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UK tech sector retains third-place global ranking despite headwinds

UK tech industry funding
Image credit: Shutterstock

UK tech startups have been valued at a combined £820bn despite economic headwinds, with a surge in healthtech investment helping the UK retain third spot behind only the US and China.

Data from HSBC Innovation Banking, formerly Silicon Valley Bank UK, and Dealroom show that UK startups are valued at $996.8bn, up from last year’s $988bn.

So far this year UK tech startups have raised $12.4bn (£10.2bn), which means it’s unlikely that they will match the £24bn raised in 2022.

The findings have been published alongside the launch of The Data Commons, a joint venture between HSBC Innovation Banking and Dealroom to provide a national database on the UK startup ecosystem.

“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 Erin Platts, CEO of HSBC Innovation Banking UK.

“To date, innovators, investors, policy-makers and decision-makers have found it challenging to build and access a complete picture of the state of UK innovation. With Data Commons, the public and private sectors now have a critical tool to analyse and track the performance of the innovation economy to support investment and strategic decisions.”

Healthtech startups attracted the largest portion of investment, overtaking fintech for the first time.

The data also showed that the UK has produced 151 unicorn companies with valuations of $1bn or more.

“Tech and innovation is a central driver for UK businesses and it is great to see the value of our tech sector rising in the global standings,” Sheeraz Saleem, CTO of foreign exchange firm DKK Partners told UKTN.

“These innovations can play a key role in the growth of businesses, so it is important that the UK continues to cement itself as a leading tech hub and a prime investment centre in order to attract funding and continue to fuel R&D in order to give businesses access to the technology they need to thrive across different markets.”

Last year, the combined value of the UK’s public and private sector tech companies surpassed $1tn for the first time.