Tech companies raised a record £6.6 billion capital in London IPOs last year.
Following a year of bumper public debuts by tech companies, that was more than double 2020’s figures of £3.1 billion, according to data from the London Stock Exchange.
With 126 companies listing in the UK in 2021, tech companies made up 29% of listings on the LSE, indicating the UK tech industry’s increasing maturity and driving much of the London market’s success.
The analysis is revealed as Prime Minister Boris Johnson, Digital Minister Chris Philp and Economic Secretary to the Treasury John Glen plan to speak with founders and leaders from leading high-growth tech companies – including Quantexa, Bought by Many, Oxford Nanopore and OakNorth – from 10 Downing Street today.
Update: following the publication of Sue Gray’s report into lockdown parties at Downing Street, Boris Johnson pulled out of the meeting to focus on his response
They are expected to discuss the strengths of the UK tech ecosystem and the implementation of reforms recommended by Lord Hill in his recent UK Listings Review.
The proposals include the reforming of dual class share structures and free float requirements, as well as the evolution of the UK’s SPAC (special purpose acquisition company) regime to better meet the needs of those seeking capital.
Investment firm Hambro Perks announced in November that it was launching London’s first SPAC under the new rules.
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Landmark IPOs of UK-headquartered businesses in 2021 included Deliveroo, Moonpig and Trustpilot. The 37 tech IPOs compare with just eight in 2020. London also attracted companies from Denmark (Trustpilot), Canada (AlphawaveIP) and the US (Devolver Digital).
Seven FinTech companies – including LendInvest, PensionBee and Wise – listed last year, with 10 eCommerce firms taking the plunge, including Moonpig, Made.com and InTheStyle.
“The UK is home to entrepreneurs, innovators and disruptors across a range of sectors, with some particularly remarkable success stories for companies in the technology sector,” said Julia Hoggett, CEO of London Stock Exchange plc.
“Last year demonstrated that the London Stock Exchange is increasingly becoming one of the top destinations for these companies and their founders to finance their visions and thrive.
“We now have an opportunity to build on this momentum, supported by the ambitions of the UK government, and for the UK Capital Markets to play a leading role driving growth in the global tech sector and supporting the UK economy for many years to come.”
Yoram Wijngaarde, founder and CEO at Dealroom, said: “The road for tech startups from pre-seed to IPO and beyond has become a lot shorter and that is testament to the quality and breadth of the UK tech industry.
“The maturing ecosystem has led to an increase in investor confidence which is likely to grow further over the next few years as more scale-ups get ready for the next step.”