There’s no doubt that times are about to get tougher for UK tech startups, but as London Tech Week kicked off yesterday it’s also clear that there is room for optimism for the future of the industry,
Funding in 2022
Dealroom.co‘s latest report showed that while levels of investment may have dropped off from the dizzying levels reached in 2021 and valuations are on a downward trend, total investment in the first five months of 2022 exceeded the whole of 2020 and levels of funding in May are still above pre-pandemic levels.
Government Support
Chancellor Rishi Sunak and Secretary of State for UK DCMS, Nadine Dorries, used their speeches on the opening day of LTW to pledge the government’s continued support for and reiterate its commitment to, ensuring that the UK retains its status as a global hub of technological innovation and growth. They outlined a new digital strategy which includes initiatives to meet the skills gap through employer-led training; attracting future tech entrepreneurs from overseas through a “Hyper Potential Visa”; and ensure the tech sector is “fit for the future” to maximise the potential of computing innovation such as AI, IoT sensors and quantum computing.
Innovation for the wider economy
Ensuring a robust tech sector is not an end in itself. The need for technological innovation to help other sectors such as food manufacturing meet targets on sustainability and productivity or the healthcare sector to deliver better outcomes mean that the continued growth of UK Tech is crucial to the resilience and growth of the whole economy particularly in a post-brexit world.
While many startups and scaleups will now struggle to get funding to grow or even get off the ground, those that can prove their ability to deliver value creation in key sectors and demonstrate strong revenue potential should continue to secure investment – but it’s not going to be as easy as before.
By ensuring they have the talent they need including strong financial leadership, founders and CEOs will be better placed to compete for cash as the purse strings tighten.
TalentEdge help Tech startups and scaleups to find the best finance talent from first hires to building out teams. Contact Alex Laurent at alex.laurent@talentedge.co.uk to find out more.
