More than five new tech start-ups launched every hour in 2019, contributing to a record 681,704 new business formations over the year – a 2.8% increase from 2018. These are some of the findings of the Centre for Entrepreneurs’ sixth annual analysis of Companies House data.
“It is encouraging that despite a politically turbulent year in which business confidence hit new lows, business formations continued to set records,” said Matt Smith, director of policy and research at the Centre for Entrepreneurs. “It suggests that entrepreneurial spirit is well and truly embedded across the UK with entrepreneurs continuing to turn their ideas into action”.
Over 45,000 tech startups were launched across the UK in 2019, representing 6.6% of all new businesses. 17,401 of these were registered in London (8.2% of total), while tech startups comprised 28% of all new businesses launched in Bournemouth, Poole and Christchurch. Tech startups were also highly represented in Brighton and Hove (15%), Winchester (12.8%) and Cambridge (12.5%).
The VC picture
Access to funding is a foundation for growth, and domestic innovation could be impacted if entrepreneurs fail to attract the capital they need to grow. At best, it will slow their growth; at worst, it will make them uncompetitive on a global stage, leading them to relocate or become unsustainable.
However, whilst Venture Capital (VC) investment in innovative UK scaleups surged during 2019 hitting more than £9 billion (source KPMG) – a 22% increase over 2018 – there was, however, a continued decline in early and seed stage deals.
From the VC investor point of view, whether this is a fundamental shift in investor appetite, or a trend that will be reversed given the greater political certainty, remains to be seen.
How MSC R&D can help
MSC R&D are unique in that we support both UK tech businesses and the UK investor community.
In existence since 1990, our deep technical and financial expertise enables us to help our clients take full advantage of the UK’s attractive R&D tax relief and innovation grant support programmes – generating them hundreds of millions of pounds of critical R&D funding.
This expertise also enables us to support a growing number of VCs through our specialist Technical Due Diligence services – helping them to select the potential winners of the future. We have worked with hundreds of companies over the years and know what good looks like.
So, if you are a VC or an ambitious new tech start-up, why not contact us to find out we can help you.
0114 230 8401
