New data from growth platform Tech Nation has found that nearly a quarter of all UK tech companies are reaching Series C or exit.
However there’s a stark warning that the majority of tech companies who are in earlier stages of growth, especially those R&D intensive firms who tend to have longer product development cycles and time to market, need support in order to grow.
The research also found that 0.4% of the UK’s tech companies have undergone an IPO over the last decade. This equates to 54 IPOs over the last 10 years (with 37 of these taking place in 2021), with companies collectively raising £3.22bn to date.
The majority of these IPOs have taken place for FinTech companies over the last decade, confirming FinTech as one of the UK’s strongest tech sectors.
Deliveroo, The Hut Group, and Funding Circle top the charts for IPO volume, collectively raising £1.91bn.
Tech Nation warned that if the 50 per cent of seed and pre-seed tech firms are to grow into the scaling engines of the UK economy, the supply of capital that sustains their early growth must be prioritised.
Dr George Windsor, research and data director at Tech Nation, said: “We have a lot to be proud of in our tech sector, with more and more companies achieving high-quality liquidity events.
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“We know that the UK is globally renowned for its success in FinTech, which dominates for IPOs, and although this is truly exciting news, we must not ignore the fact that an even larger percentage of tech companies are not seeing the same success.
“We must nurture the newest wave of UK tech companies, who are innovating to address important social, healthcare and environmental problems. It is imperative that we give these companies the support they need to achieve their full potential and shape our world for the better.”
Swati Lay, chief technology officer at Funding Circle, said: “This research points to UK Tech’s huge potential, and the continued need to ensure fast-growing firms receive the right support at the right time.
“As alumni of Tech Nation’s Future Fifty Programme, we understand the importance of supporting the next generation of founders and companies as they scale. These entrepreneurs will be the technology success stories of tomorrow.”