UK tech sector reaches record £817bn valuation
The UK tech sector has been valued at £817 billion, its highest ever level, despite a turbulent investment landscape, according to HSBC Innovation Banking.
UK tech startups achieved a value of $996.8bn, up from $988bn last year, HSBC Innovation Banking research found, with the tech scene buoyed by widespread developments in AI.
The valuation places the UK as the third global tech player, sitting behind the US and China, during a time when the Prime Minister is pushing to become a “Science and Tech Superpower” ahead of the Bletchley Park AI Summit in November.
Sheeraz Saleem, Chief Technology Officer at DKK Partners, commented: “Tech and innovation is a central driver for UK businesses, and it is great to see the value of our tech sector rising in the global standings. The FinTech industry in particular is leveraging exciting developments in AI and blockchain for a host of use cases, including the development of digital assets that can lower the cost of foreign exchange and fuel overseas trade.
“These innovations can play a key role in the growth of businesses, so it is important that the UK continues to cement itself as a leading tech hub and a prime investment centre in order to attract funding and continue to fuel R&D in order to give businesses access to the technology they need to thrive across different markets.”
The figures come despite turbulence in the European tech investment landscape.
Research from Atomico highlighted that UK tech investment fell 57% in H1 as investors were rocked by economic uncertainty and rising inflation.
Andrew Drylie, Investment Manager at Quadri Ventures, commented: “The UK has played a leading role in global tech developments in recent years, with many innovative, up and coming companies trailblazing in areas of emerging technologies. The business ecosystem thrives off collaboration between tech developments to drive efficiencies and growth across businesses, and that must be supported by tech investment to allow innovators to continue pushing the boundaries, whether that be cloud, AI, data or beyond.
“The UK tech sector has already cemented itself in a strong position, and with the help of investors, it is capable of pushing even further, and in turn turbocharge business growth, underpinned by technology, across the country.”