Investment flowing into sector
Tech funding outside London now higher for first time
Edinburgh, Glasgow and Dundee are among British cities now benefiting from a technology explosion which also includes Cambridge, Bristol and Bath, as well as former industrial locations such as Sheffield and Sunderland.
Last year, 68% of technology investment in the UK was outside London, according to Tech Nation 2017, the latest report from Tech City UK.
However, Scotland still has to catch up with London, Bournemouth & Poole, and Newcastle which have the highest concentrations of high growth digital tech businesses in the UK.
The UK digital tech sector is now growing twice as fast as the wider economy, employing more than 1.6 million people, with salaries on average 44% higher than other sectors.
UK technology firms now attract the highest levels of investment in Europe, drawing £6.8 billion in international investment. Closest rival, France, secured £2.4bn while Germany raised only £1.4bn in foreign investment.
The report also found that many tech companies are still being forced to head south to seek investment, a trend which is being addressed in Scotland through initiatives such as the Codebase backed Accelerated Digital Ventures (ADV) which has set an ambitious target of aiming to fund all stages of development, from entry to exit.
The platform is funded by three institutional heavyweights. The British Business Bank will provide a third of the capital with Legal & General (L&G) and Woodford Investment Management providing the remainder.
It will target companies in cities regarded as digital technology hubs and will invest in accelerators and incubators to provide, growth stage (Series A), and late stage (Series B, C and beyond) finance.
ADV’s long-term aim is to invest upwards of £200m every year into UK-based start-ups and scale-ups.