Sunday 24 February 2019 11:58 pm

The number of new tech startups in the UK grew 14 per cent last year

The number of new tech companies launched in the UK rose 14 per cent in 2018.

Data from Companies House shows there were 11,864 software development and programming businesses incorporated in 2018, up from 10,394 companies the year before.

London had the highest number of tech startups with 4,752, a 14 per cent increase.

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This was followed by the south east with 1,398, a two per cent rise, while the north west recorded 1,079 new tech firms, a 48 per cent rise.

The number of tech firms grew across every UK region except Scotland where numbers fell four per cent to 444 and the north east where numbers remained flat at 175.

David Blacher, of accountancy firm RSM which compiled the figures, said: “Given the current economic uncertainty, it's fantastic to see that tech start-ups have continued their upward trajectory. While the rate of increase didn't match 2017 when we saw a 60 per cent jump, the numbers show that entrepreneurs are continuing to innovate and venture capital, private equity and traditional funders are still lining up to commit funds to the right projects.

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“London and the south east still dominate, but we are also seeing encouraging signs of increased activity across the regions, particularly in the north west. Tax incentives such as the Enterprise Investment Scheme, R&D tax credits, video games tax relief and the Patent Box regime are all playing their part in helping to fuel this growth.

“The challenge for startups, particularly in the tech space is to develop at speed and to scale-up fast. There can be a high rate of failures as projects can often get overtaken by new technological innovations or better resourced competitors. But get the formula right, find the right backers and success can be very lucrative.”