UK tech leaders embrace risk as confidence returns
More than half of UK tech, IT and Telecoms business owners and CEOs say they are more willing to take risk than a year ago, signalling a growing sense of optimism about future growth, according to new research commissioned by mid-market private equity firm ECI Partners.
The survey shows 55% of tech, IT and telecoms respondents now have a higher appetite for risk, compared with just 21% who say their appetite has fallen. A further 24% report no change. In contrast, perhaps owing to the increased burden of NI and business rate changes, only 31% of retail sector companies said they have a higher appetite for risk.
Cost pressures remain the dominant challenge
Despite improving sentiment, rising costs are the single biggest concern for UK tech, IT and telecoms businesses, cited by 31% of respondents. Other challenges include digital transformation (15%), the perceived threat from AI (14%), talent shortages (11%) and regulation and compliance (10%).
Good prospects for private equity investment
The findings point to a robust outlook for private equity, with 54% of tech, IT and telecoms businesses currently considering PE investment.
International expansion firmly on the agenda
Confidence is also translating into ambition. More than 89% of tech, IT and telecoms businesses are considering international expansion as a growth driver in 2026. Of these companies, private equity and venture capital are the most popular funding options, cited by 35% of respondents, ahead of government grants (19%) and bank finance (19%).
Businesses value expertise as much as capital
When asked about the benefits of private equity, respondents highlighted sector expertise and networks (30%) and also technology and AI expertise (30%), followed by international reach (14%) and access to talent (9%).
Tom Wrenn, managing partner at ECI, commented: “This research is what we like to see as investors – positive sentiment from UK business leaders with a renewed appetite for risk. What is particularly striking is the number of management teams actively considering private equity as they look to expand internationally and navigate the shifting sands of GenAI. We see this from the founders and CEOs we speak with, who are looking for experience and expertise from their partner to navigate the growth opportunities ahead of them. Across five decades of investing we’ve refined a repeatable value creation model, which is one reason many CEOs look to partner with ECI. The findings reflect this, underlining that businesses increasingly see PE as a strategic partner, not just a provider of capital.”