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UK energy tech startups are struggling to scale – here’s why

UK energy tech startups

The UK tech industry is booming, with startups raising more than £29bn in 2021. But some sectors are booming more than others. Recent data shows that UK energy tech startups are struggling to scale compared to other areas, such as fintech and AI.

There are 950 energy tech companies in the UK and yet 47.6% of them are “stuck” at the seed investment stage, according to a report by entrepreneur network Tech Nation.

Crucially, the ‘Emerging Energy Tech Report‘ found that for every UK energy tech startup at a seed or early growth stage, just 0.2 make it to a late-stage company. That’s compared to 0.6 when looking at startups across all sectors.

Later stage funding, from Series A and beyond, is often essential for a company to scale. And while some have successfully done so – including OVO Energy and Zenobe – there is the risk that comparatively more energy tech startups are doomed to fail....