Investment in the UK’s tech sector has overtaken both India and China compared to the full year 2021 rankings with $15.6 billion (£12.7 billion) raised to the end of May 2022.
According to a report from Dealroom and Tech Nation, the UK ranks behind only the US on the global stage; and second globally for startup funding in 2022, after a record Q1.
Their report notes: “Amid a turbulent start to the year for global markets and early signs of a pull back in venture capital, the UK tech ecosystem has held up remarkably well so far in 2022.”
This is all good news but the gap between the UK and US is massive. VC investment in the latter came in at a mighty $123.4 billion (£101 billion).
That said, Q1 2022 was a record quarter for venture capital in UK tech, with $11.3 billion (£9.25 billion) raised by UK-based startups in the first three months of the year.
The UK’s startup scene is exceptionally lively – whether it’s about funding or launches. Regular readers of eWeek UK will have noticed the abundance of scoops on tech startups.
Just last week, we discovered healthtech app Oplinx in London and greentech firm SDG Assessment in West Sussex.
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Historically the strongest sector in the UK, fintech once again accounts for the largest share of funding of any sector.
Half of UK funding this year has gone to UK fintech companies, including megarounds for FNZ (£1 billion), Checkout.com (£728 million), Bloom (£300 million) and GoCardless (£230 million).
London has raised more fintech investment so far this year than any other hub globally, including the Bay Area.
The sectors following in fintech’s wake – and in order of their VC funding – comprise health, telecom, transportation, marketing, energy, food, real estate, gaming and security.
The nation has now produced 122 $1 billion (£818 million) startups and exits, behind only the US and China in unicorn creation.
The UK also has a “deep pipeline” of potential future unicorns – with 248 companies valued over $250 million (£204 million).
While London is the biggest tech hub in Europe, the UK is also home to a number of other burgeoning tech hubs that compete on the global stage, cities like Oxford, Bristol, Manchester and Cambridge.
Last month, eWeek UK looked at tech and fintech companies to watch in Manchester. The other three locations will be covered in the future.
Dealroom and Tech Nation note: “While the resilience of all startups and tech ecosystems is likely to be tested hard in the next 12 months plus, the UK’s strong tech sector fundamentals stand it in good stead, and as a proven successful hub can hope to capitalise on global uncertainty.”
