The number of new tech companies incorporated in London surged 94 per cent in 2021, with the capital becoming a new hotspot for investment.
A total of 18,549 tech businesses were incorporated in the City last year, according to an analysis of data held by Companies House.
London accounted for the highest number of applications, which represented almost half of all new tech businesses in the UK last year.
The UK tech sector 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.
According to the audit, tax and consulting firm RSM, this data further signals the UK’s key role in supporting entrepreneurs and encouraging innovation.
“Our analysis shows an unprecedented level of tech incorporations. As expected, 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”, David Blacher, partner and head of Media and Technology at RSM UK explained.
“It is clear to see that the tech sector has thrived in conditions where other industries have either slowed or declined”.
He added that the rollout of 5G, as well as the growth of the metaverse and crypto has led to more companies defining themselves as tech firms.
Overall, UK tech incorporations increased 62 per cent in 2021, from 23,579 to 38,240.