UK tech health check – London Tech Week 2022

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. As London Tech Week kicks off, it’s time to check the pulse of Europe’s leading tech ecosystem.

Report - UK tech update – London Tech Week 2022

Q1 2022 was a record quarter for venture capital in UK tech, with $11.3B raised by UK-based startups in the first three months of the year. So far this year, the UK has raised more VC than any other country in the world apart from the US, overtaking both India and China compared to full year 2021 rankings with $15.6B raised to the end of May.

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 ($1.4B), ($1B), Bloom (£300M) and GoCardless ($312M). Indeed London has raised more fintech investment so far this year than any other hub globally, including the Bay Area.

The UK has now produced 122 $1B+ startups and exits, behind only the US and China in unicorn creation.

The UK also has a deep pipeline of potential future unicorns (valued $250-$1B). While London is the mostly important 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.

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.

Report - UK tech update – London Tech Week 2022