Tech startups grow by one third in the UK
According to ITPro, ‘The number of new UK tech startups increased by almost 16% in the third quarter of 2020.’ The increase in tech startups is partly down to COVID-19, during the lockdown there was a huge technology demand, due to remote work. With people spending more time at home there was also a significant demand for tech-based entertainment services. Stats show that nearly 20,000 new tech companies were launched last year, (ITPro, 2021).
CityAM recently reported that ‘London is now home to almost a third of all tech unicorns,’ for those who aren’t familiar with the term, a tech unicorn refers to a tech company that investors have valued at over 1billion dollars. Allen Simpson of London & Partners stated that, ‘Investors are showing real confidence in London’s fintech offering as well as in an ecosystem with a vibrant funding ladder, reinforcing the city’s position as a leading global fintech hub and a fantastic place to set up and scale a fintech company,’ (CityAM, 2021).
Which tech startups have experienced growth during COVID-19?
Tech startup DivideBuy achieved a huge amount of growth during the pandemic. The business reported an ‘average three-year growth rate of £20,733% to the year 2019/2020,’ (UKTN, 2021). The company provides interest-free credit plans for both individuals and businesses.
Another tech startup that experienced plenty of growth during the pandemic was Hopin. It’s a platform for virtual events, where users can connect and interact with people from across the world. The business has managed to triple its valuation just one year after the launch, earlier this year Hopin received $400M in funding, (UKTN,2021)
Modern businesses need the latest tech solutions to scale their companies and support remote work. Whether it’s a Mentoring Platform or fintech solutions, companies need technology to remain future-proof and competitive.
A surge in climate tech startups
As the name suggests, climate tech startups create services and products to reduce the effects of climate change. Many climate-tech startups have emerged over the last few years, and these companies are raising plenty from investors. According to The Evening Standard, climate tech companies ‘raised £1.09 billion from investors in 2020, and £261 million so far in 2021,’ (ES, 2021). In the UK there are around 520 climate tech businesses. Tech company Cervest experienced significant growth last year, with the help of artificial intelligence the company has built the first climate intelligence platform.
We can expect to see plenty more climate tech startups come out of the UK in the next couple of years. Predictions indicate that the health & wellness tech sector will also experience a surge in demand, (particularly online fitness services). For aspiring entrepreneurs, there are plenty of opportunities to develop new tech-based products, and contribute to the UK economy. With the right technology businesses can thrive and improve workplace culture.