The number of new tech companies incorporated in London jumped 94 per cent last year, it has emerged.
A total of 18,549 tech businesses were incorporated in London in 2021, according to an analysis of data held by Companies House, up from 9,572 in 2020.
London accounted for the highest number of incorporations in 2021, which represented almost half (49 per cent) of all new tech businesses in the UK last year, tax and consulting firm RSK UK said.
“This shows an unprecedented level of tech incorporations,” said David Blacher, partner and head of media and technology at RSM UK, commenting on the findings.
“London saw the biggest take-up, but to be seeing incorporations increasing by between 40 – 60 per cent in regions throughout the UK is very encouraging.”
“It is clear to see that the tech sector has thrived in conditions where other industries have either slowed or declined.”David Blacher
“Covid-19 has encouraged more businesses to embrace technology, both to operate successfully during periods of disruption and to adapt to shifting consumer demands,” Blacher added.
“The rollout of 5G and experimentation with new ideas such as the metaverse and crypto has led to more companies perceiving themselves as a tech business which wouldn’t have been the case in the past,” he continued.
Overall, UK tech incorporations increased 62 per cent in 2021, from 23,579 to 38,240.
Third tech economy
The UK tech sector this year became only the third economy, alongside the US and China, to reach $1 trillion in value after a surge in growth throughout the pandemic.
The UK’s digital industry is now worth more than double Germany’s equivalent, its closest European rival.
Tech company incorporations by year
|West Midlands (England)||1,119||1,799||61%|
|North East (England)||295||469||59%|
|North West (England)||1,658||2,371||43%|
|South East (England)||3,056||4,115||35%|
|Yorkshire and The Humber||849||1,135||34%|
|East of England||1,722||2,190||27%|
|South West (England)||1,156||1,445||25%|
|East Midlands (England)||794||975||23%|