UK tech sector “attracts record levels of investment” despite Covid-19, report reveals

The UK technology sector has shown “resilience and growth” in 2020 despite Covid-19 disruption, a major study has revealed.

The research, published by Tech Nation, shows that the industry has continued to grow and attract record inwards investment.

According to the latest figures, the number of new UK tech start-ups grew by 13 per cent in 2020, from 12,696 new incorporations in 2019 to 14,301 new incorporations last year.

Regionally, London maintained its position as the number one destination for establishing a tech business, recording 7,480 new incorporations in 2020, up 24 per cent compared to the previous year.

The West Midlands recorded the largest regional increase, however, rising 40 per cent from 585 new incorporations in 2019 to 821 new incorporations in 2020.

The Tech Nation Report also reveals that the UK tech sector attracted some $15 billion (£10.8 billion) in investment in 2020, placing third behind only the US and China, but ahead of all of Europe.

Net Zero and Transport tech saw the biggest growth in annual investment, with each rising by 160 per cent compared to the previous year.

Commenting on the figures, Digital Secretary Oliver Dowden said: “With record levels of investment secured and UK listings gaining momentum, this report shows Britain’s tech sector continues to go from strength to strength, solidifying our position as one of the world’s top tech hubs.

“We want to bring about a golden age of UK tech through a raft of supportive measures and funding to help businesses thrive. This will help fuel a booming tech sector – creating jobs and improving services so that we can build back better from the pandemic.”

Prime Minister Boris Johnson added: “The UK is maintaining its lead as one of the world’s premier centres for tech of all kinds. While the real credit lies, as ever, with the engineers and designers toiling away at laptops across the country, I’m immensely proud to lead a government that is so comprehensively committed to supporting the sector.”

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Posted in Blog, Business News.