Bumper year

UK tech sector is third to be valued at $1 trillion

Chris McCann and Stewart Whiting
Chris McCann and Stewart Whiting of Current Health

Britain’s technology sector has become only the third in the world to be valued at $1 trillion, with the digital economy now worth more than double that of Germany’s and almost five times larger than France and Sweden.

Edinburgh and Glasgow are among the UK’s top five cities for tech investment so far in 2022, with companies from the two cities raising a combined £115 million of investment.

The data, calculated by Dealroom and analysed for the UK’s Digital Economy Council, also reveals that Edinburgh’s average advertised salary of £58,405 is the highest outside of London and the South-East.

Scotland enjoyed a bumper 2021, with companies across the country raising a collective £228 million through over 50 venture rounds. The researchers say this indicates a rising class of early-stage companies that will go on to become future tech giants.

It lists examples as healthtech firm Current Health, which was sold last year for $400m (£300m), and the tidal energy company Nova Innovation. However, it also lists ready meals business Parsley Box, even though its value has plummeted after a series of setback from £84m on flotation in March 2021 to just £12m. It also lists Pocket FM, which appears to be confused with a company by the same name based in India, and Encompass Corporation, which has an office in Glasgow but is headquartered in London.

Skyrora, the next-generation space launch vehicles startup, is predicted to join the list of Scottish unicorns, or companies valued at $1 billion.

Digital minister Chris Philp said: “Our tech industry has gone from strength to strength, overtaking the rest of Europe and entering the history books as the third country ever to reach this milestone.

“We’re working hard to make the UK the best place in the world to found, grow or float tech businesses – whether they’re early-stage startups or global innovators – ensuring they have the best talent, investment and regulation to thrive.”

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