The UK shows the EU how to build a tech industry
LATEST: Brexit Britain completely dominates the EU in the fastest growing economic sector
Montage © Facts4EU.Org 2022
UK’s tech ecosystem reaches $1 trillion in value – more than Germany and France combined
The UK tech industry is now worth $1 trillion in value, as the country’s tech sector becomes the third in the world ever to reach this landmark valuation.
Brexit Britain has the top tech ecosystem in Europe. The UK’s thriving digital economy is now worth more than double that of Germany’s and is almost five times larger than France and Sweden, according to data by Dealroom analysed for the UK Government’s Digital Economy Council.
This rapid rise in the value of UK tech follows sustained investment in the digital tech sector over the past few years. The products and services that kept us connected at home during the Covid pandemic have become key parts of our daily lives now, helping propel company valuations higher and the UK tech ecosystem into a new league.
Brexit Facts4EU.Org Summary
UK becomes only the third country in world to break Trillion Dollar Tech worth
- Investment in UK tech over the past few years means its tech ecosystem is now valued at $1 trillion
- The UK is the third country in the world to reach this landmark valuation after the US and then China
- UK tech is now worth more than double Germany’s and almost five times larger than France and Sweden
- Fastest growth took place between 2020 and 2021 when the UK tech sector increased by 42% in value
- UK home to 13 decacorns (valued at above $10 billion) and 14 unicorns (valued $5- $10 billion)
Digital Minister Chris Philp MP, said:
“Our tech industry has gone from strength to strength, overtaking the rest of Europe and entering the history books as the third country ever to reach this milestone. We’re working hard to make the UK the best place in the world to found, grow or float tech businesses – whether they’re early-stage start-ups or global innovators – ensuring they have the best talent, investment and regulation to thrive.
“Every corner of the country has contributed to the sector’s success including the West Midlands whose digital ecosystem is set to keep growing by at least £2.7 billion by 2025 and create 52,000 additional jobs.”
- Chris Philp MP, Birmingham, 29 Mar 2022
In the all-important FinTech sector the news is even better
When it comes to the all-important FinTech sector, even the usually negative HM Treasury now has to admit that Brexit Britain's results are spectacular - particularly in comparison with our neighbours who are still in the EU.
On Monday (04 Apr 2022) John Glen MP, Economic Secretary to the Treasury, gave the keynote speech at the Innovate Finance Global Summit held at London's Guildhall.
John Glen MP, Economic Secretary to the Treasury
"Fintech is punching higher and harder. Year-on-year investment growth in UK fintech was up more than 200% in 2021.
"We’re the leading European fintech hub… and second only to the U.S. worldwide.
Almost half of the fintech unicorns in Europe are based in the UK… and last year, the sector attracted more investment than France, Germany, Sweden, and the Netherlands combined.
That matters. Because, as the Chancellor told you last year, part of the way we become that pre-eminent financial centre that he describes is by having the technology here to do things better."
- John Glen MP, Economic Secretary to the Treasury, Guildhall, London, 04 Apr 2022
Steady growth in the tech sector as a whole in 2022 despite challenges
In 2018, the UK tech ecosystem was valued at $446 billion and was steadily growing until 2020 when it doubled in value to $942 billion as investments into software and digital companies surged at the start of the Covid 19 pandemic, both in private and public markets.
This investment has helped to catapult the valuations of many companies from unicorns - companies valued at $1 billion or more - to the even rarer decacorn status (companies worth over $10 billion).
In just the first three months of 2022, UK tech companies have raised over £6 billion with more than half (£3.3 billion) raised by fintech companies including FNZ, Checkout.com and GoCardless. This is an indicator of the strength of the sector with private tech valuations continuing to hold up well despite falling valuations in public markets.
This growth is only set to continue. Research by the Government’s DCMS department published last year found that the UK digital sector is on track to add £190 billion in value to the UK economy and create nearly 700,000 jobs over the next three years.
This isn't only happening in London - this is national
Regional companies are also raising large sums of money including Durham-based Atom Bank, the UK’s first challenger bank, which raised £75m in late-stage funding and Oxford-based ONI, a next-generation health tech devices start-up, which raised £57m in Series B funding in January.
The West Midlands is the place to be right now for tech and digital. That region is now officially the fastest-growing tech economy in the UK, with the region set to add £2.7 billion to the economy by 2025 and create an extra 52,000 tech roles.
The 13 UK decacorns
The UK is now home to 13 decacorns of which 10 have gone on to IPO, and are the most highly-valued tech companies in the country. This is double that of Germany and three times that of Sweden.
This group of outstanding leading companies is on track to get larger over the next few years. 14 UK companies having valuations of between $5bn and $10bn are expected to join its ranks and achieve decacorn status.
There are more companies valued at $5 to $10bn in the UK than in Germany, France and Sweden combined.
While most of the UK’s decacorns and unicorns are concentrated in London, there are now 44 unicorns spread out across the regions and 100 regional futurecorns that are laying the groundwork for future success across the country.
Observations
EU competition left trailing yet again
The UK’s thriving digital economy is now worth more than double that of Germany’s and almost five times larger than France and Sweden according to data by Dealroom analysed for the UK’s Digital Economy Council.
And in achieving that outstanding performance the level of investment in the UK’s Tech ecosystem has crossed the Trillion Dollar mark, behind much larger and more populous countries – the US and China.
Tech investment shows why OBR modelling is wrong
No matter how well the UK economy does (and it is STILL putting out numbers better than those coming out of the Eurozone or the EU) we keep hearing only doom and gloom from those vested interests that stand to gain from doing Britain down. Time and again they turn to official Treasury forecasts or the modelling of the Office of Business Responsibility (OBR) for saying the UK will lose GDP every year because we have left the EU. WRONG!
What the modelling cannot and therefore does not take account of is the prosperity and economic growth that will come from new innovations that the modelling cannot predict or foresee – and Tech investment is what will bring much of the new GDP. It is the growth of the future and it is because our regulation and business ecosystem is better that it is doing so well.
In short, Brexit is working and no account of doom-mongering can disguise the good news we publish regularly.
Discovering such good and generally unreported news does not come cost free…
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[ Sources: UK Digital Economy Council | HM Treasury | Innovate Finance Global Summit ] Politicians and journalists can contact us for details, as ever.
Brexit Facts4EU.Org, Wednesday 7 April 2022
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