There’s no denying it — UK tech startups have seen historic growth in recent years, not least 2021 which saw £21.7b raised.
However, since the dizzy heights of 2021, deals are down — significantly. In 2024 (so far) the value of investments into UK tech companies has plummeted by 52% to £10.5b, amidst a broader downward trend on 2021 figures as we reported in The Deal.
The number of new tech incorporations has also tumbled, with 1,358 tech startups incorporated in 2020 versus just 679 in 2023.
However, there are green shoots in the startup scene to take note of. Whilst the wider figures of tech investment are down, seed and venture stage tech startups in the UK have actually seen higher investment figures than 2021’s £4.73b, with £5.69b raised by early-stage tech businesses in 2024 so far.
The UK has a particularly large number of high-growth software-as-a-service (SaaS) businesses (4,335), as well as those operating in artificial intelligence (1,891) and fintech (1,545).
And despite taking on the double incursion of Brexit and the COVID-19 pandemic, the UK (specifically London) remains a top startup hub and — according to Tech Nation’s 2024 report — remains the biggest tech ecosystem in Europe.
Startups have access to leading venture capital funds, alongside some of the most active angel investors in the world. Tech entrepreneurs in the UK also benefit from an excellent network of accelerator programmes and grant schemes aimed at small businesses.
So, which UK tech startups should you be watching, with 2025 just around the corner?
