More UK scaling tech companies are exiting than ever before, according to new data from Tech Nation.
Nearly a quarter (23 per cent) of tech firms made it to Series C or a liquidity event in 2021, with 15 per cent of those in the fintech sector.
Over the last decade, the UK achieved 1,200 acquisitions and 54 IPOs – 37 of these taking place in 2021 alone, the growth programme firm revealed.
Deliveroo, The Hut Group, and Funding Circle have been the biggest success stories in terms of IPO volume, collectively raising £1.91bn.
The figures mean the percentage of UK tech companies reaching exit is greater than the percentage that fail, which currently sits at 20 per cent in 2022.
However, the remaining 50 per cent of tech firms remain at stages of low growth, employment and investment and still require support to scale, the firm warned, particularly those working in deep tech, AI and quantum computing.
In June this year, Labour’s shadow chancellor Rachel Reeves launched a review to investigate what can be done to support more UK tech start-ups.
“We have a lot to be proud of in our tech sector, with more and more companies achieving high-quality liquidity events,” Dr George Windsor, research and data director at Tech Nation, said.
“We know that the UK is globally renowned for its success in fintech, which dominates for IPOs, and although this is truly exciting news, we must not ignore the fact that an even larger percentage of tech companies are not seeing the same success. We must nurture the newest wave of UK tech companies, who are innovating to address important social, healthcare and environmental problems.
“It is imperative that we give these companies the support they need to achieve their full potential and shape our world for the better.”