A recent survey has found that more than 10,000 new tech firms opened for business in the UK last year, an increase of 60 per cent on 2016 when only 6,300 were incorporated. At the same time, US firms invested a record amount in the tech sector in the UK.
Last year, UK venture capital investment exceeded Germany, France and Sweden combined. The UK now has the third highest global investment in tech after the US and China and recently, London was once again ranked as the leading tech hub in Europe.
Separate research found that Silicon Valley put £1.1 billion into British tech firms in 2017. Meanwhile, East Coast US firms invested a further £1.3 billion, also a record amount. The US investors said that the most important reason behind their decision to invest in UK tech start-ups was the skills they found here.
According to Matthew Hancock, Minister of State for Skills and Enterprise, for this success to continue the Government and tech businesses must keep working together. He added that this is the foundation of the UK’s industrial strategy.
As part of this strategy, the Government and businesses joined forces recently to launch a billion-pound deal to make sure the UK stays at the first rank of artificial intelligence economies.
However, while interest from the US in UK-grown businesses is stronger than ever, there are several errors British firms make when they go looking for investment, such as not even being on investors’ radar as ripe for growth.
Another is that American investors want to see ambition, which can be difficult for business owners with typical British reserve to demonstrate. They need to showcase their potential and the benefit to the investors, not just send investors a list of product features.