Thriving Technology Sectors in the UK
Technology sectors in the UK are thriving and have thusly brought about an increased level of awareness to the public consciousness. The government-driven Digital Economy Council have announced that there are now multiple tech unicorns in six UK cities including; Leeds, Bristol, Manchester, Edinburgh, Oxford and Cambridge. Although the Tech sphere in Britain does appear to be flourishing, investment outside of the capital is still relatively small in relation to London, despite being home to several unicorns.
Passionate to inspire angel investors in the regions, the UK Business Angels Association have conducted national research into regions that are the most forward facing with their choices of investment portfolios. The research found that a high proportion of angel investors were looking to invest into tech based companies in the next two years, with the North East being the most prominent region, compared with the national average of 24%.
- North East – 44%
- London – 37%
- West Midlands – 30%
- Scotland – 29%
- North West, Yorkshire & Humberside and South East – 21%
- Wales – 18%
- East Midlands – 17%
- East of England – 16%
- South West – 15%
- Northern Ireland – 12%
According to an independent report by the UK 2070 commission, the UK is one of the most regionally unbalanced countries in the industrialised world and the disparities will widen unless the government adopts a radical programme of investment.
Jenny Tooth OBE, CEO of the UK Business Angels Association, has commented on the findings of the research:
“Disparities in regional investment are still hugely prevalent in the UK. For every £10 of business investment in the UK, £6 is received by those in London. What our research has shown though is greatly encouraging. Angel investing is such an important source of investment for SMEs in the UK and it would seem that Angels are yet again going providing essential investment for those in the regions.
Newcastle has recently become incredibly important for the British tech sector, attracting over £25m in investment during 2018. The future for the tech sector in the North East looks to be particularly prosperous and I hope that other regions can indeed take inspiration from the North East. I too hope that this discovery will inspire Angel investors from across the country to be more active in their respective regions too. The keys to solving the problem of regional disparities will be education and bringing investors and entrepreneurs together which the UK Business Angels Association has started to achieve through their regional Angel Hubs and the series of Connected Investing events.”