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UK ranked third most valuable tech sector in the world

Written by Wed 4 Oct 2023

UK tech startups have been valued at a combined £820 billion ($996.8 billion), making it the third most valuable tech sector behind China and the United States.

Data from HSBC Innovation Banking and Dealroom found that this valuation increased by £7.2 billion ($8.8 billion) since last year’s £814.4 billion ($988 billion).

UK tech startups raised £10.2 billion ($12.4 billion) in 2023 so far, compared to £24 billion ($19.7 billion) last year.

The data also revealed that the UK is home to more than 20,000 funded startups and over 150 ‘unicorns’. A ‘unicorn’ represents a privately held startup company with a value exceeding £824 million ($1 billion).

The release of The Data Commons, a collaboration between HSBC Innovation Banking and Dealroom, coincided with the unveiling of the data. Its goal is to launch a national database for the UK’s tech startup industry.

The Data Commons consolidates data like investments, patents, job opportunities, companies, and founders on an open-access platform.

CEO of HSBC Innovation Banking, Erin Platts, stressed the need for open-access, accurate data.

“Given the dynamic, fast-paced and unpredictable nature of the innovation ecosystem, the availability of open-access, real-time and accurate data is essential for making informed decisions,” said Platts.

The UK Leads Venture Capital Investments in Europe

The UK also ranked third in the world and first in Europe for global venture capital investments, behind China and the US, and ahead India and France. In total, the UK raised 2.3x more investment than France.

While the UK leads in Europe, other countries are closing the gap, with investment growing at a faster pace. Longer term investment growth trends also show the UK behind the European average.

Most of the drop in UK startup funding is attributed to the fall in mega rounds. However, early-stage investment remains active and competitive.

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Written by Wed 4 Oct 2023

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