Number of technology companies setting up in the UK more than doubles this side of the Brexit vote

Hayley Kirton
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The Silicon Roundabout in Shoreditch (Source: Getty)

The number of tech firms setting up in the UK has more than doubled in the months following the Brexit vote last June, research out today has found.

RSM's study of data stored by Companies House discovered 5,995 software publishing, computer programming, and business and domestic software companies were incorporated in the eight months following the referendum, compared with 2,325 in the eight months preceding the vote.

"There were fears that the Brexit vote would dampen activity in the tech sector and businesses would be attracted overseas. In reality, they are staying and multiplying," said Richard Heap, technology partner at RSM. "Clearly the entrepreneurial spirit in the sector is alive and well."

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London in particular saw a dramatic rise in the number of tech companies, with an additional 1,741 firms incorporated in the eight months to February 2017, increasing from 944 to 2,685.

"London continues to be the hotbed of tech activity, accounting for almost half of all new tech company incorporations over the last eight months, but we are also seeing strong activity outside the capital, particularly in Manchester and across the home counties," Heap continued.

"The downside of this surge in activity is that the war for top talent is fiercer than ever. As the proportion of EU workers in the tech sector is far higher than the average – up to a third in London alone – many businesses will want an early resolution to the issue of the status of EU workers in addition to clarity over their ability to recruit overseas talent post-Brexit."

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