UK tech investment accounted for nearly a third of all tech investment in Europe in 2021, the latest figures have revealed.
The research, published by Dealroom for the UK’s Digital Economy Council, demonstrates the sector’s resilience in the face of unprecedented economic conditions.
According to the report, the UK tech sector, including the AI, fintech, blockchain, eco-tech, and quantum computing industries, received £29.4 billion of investment in 2021 – almost three times that received in 2020 (£11.5 billion) and the biggest year-on-year increase since 2013.
This investment contributed to the creation of 29 new tech unicorns (companies worth more than $1 billion), bringing the combined value of tech companies founded since 2000 to a record £540 billion.
But the report also reveals that UK tech is significantly outpacing Europe in terms of growth and investment.
The data shows that the £29.4 billion raised by the UK was double the figure raised in Germany (£14.7 billion) and almost three times that raised in France (£9.7 billion), and accounted for a third of the total £89.5 billion raised in Europe in 2021.
The research also suggests that interest from the USA – the biggest tech market in the world – in UK technology firms is growing. For example, 37 per cent of all funding in 2021 came from the US, up from 31.5 per cent the previous year, with the majority of cash going to fintech and health tech companies.
Commenting on the figures, Digital Minister Chris Philp said: “It’s been another record-breaking year for UK tech with innovative British startups helping solve some of the world’s biggest challenges.”
Yoram Wijngaarde, founder and CEO at Dealroom, added: “The UK tech ecosystem has exploded in the past year, with an increasing number of mega rounds minting new unicorns and futurecorns every day.
“This is significant because we know from research that employees at $1 billion plus companies often go on to found their own startups, some of which become unicorns themselves, which helps to shore up the ecosystem and lead to a new generation of global companies.”
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