The UK ranks number one in the world for fintech, with investment in UK high-growth fintech firms achieving £4.5 billion between 2015 and 2018, according to the latest annual government-backed Tech Nation report.
London continues to remain the UK’s leader in attracting high-growth tech investment, receiving a combined £9 billon across all investment categories from 2015 to 2018. Cambridge is second, at £583 million, with other UK cities continuing to make considerable ground.
The report also shows that fintech and insurtech were the biggest employers among high-growth UK digital tech firms in 2018, employing 18 per cent and 24 per cent of the workforce respectively.
Tech Nation chair, Eileen Burbidge, says: “The UK has an incredibly pivotal role in the global tech scene. Nowhere is this more evident than in the Fintech sector where the UK is ranked number one in the world; an enviable position that has been established with decades of hard work, entrepreneurial talent, innovation and supportive policymakers.”
Venture capital in UK tech topped £6 billion, more than any other European country, with 80 per cent of the funding being invested in high growth businesses. The report also shows that the UK is fourth in the world for scaleup investment after US, China and India.
Commenting on the Tech Nation findings. UK Secretary of State for Digital, Culture, Media and Sport, Jeremy Wright, says: “This report confirms the UK is one of the world’s leading digital economies, with some of the best minds globally working here and strong investment in the tech sector right across the country. We are working hard to continue this success and remain committed to making Britain the best place to start and grow a digital business.”
Beavis Morgan – Specialist business advisers to the tech sector
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Research & Development (R&D) tax relief has also proved to be a major boost to British business and, with Brexit looming, it is now more important than ever that companies seek ways to unlock cash from innovation to help fund research and development into the ongoing enhancement of existing products and services.
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