London hosts over half of Britain’s fastest growing tech
Over half of Britain’s fastest-growing private tech firms are based in London, according to a new ranking by The Sunday Times, despite growing concern over the UK’s political and economic support of the sector.
The list of Britain’s 100 fastest-growing tech firms shows that 57 of the 100 companies on the list are headquartered in London.
Together, the firms generated £3.7bn in revenues, up by £3bn over the past three years, and now employ 23,100 people, having created 11,600 jobs during that period.
The ranking highlights continued expansion across fintech, energy, AI, health technology and digital infrastructure, despite higher interest rates and tighter funding conditions affecting the wider technology sector.
Abound topped the growth list with 490 per cent annual growth, generating £66.8m by using AI and bank data to disrupt traditional credit scoring.
Meanwhile, Fuse Energy followed closely in second place with 484 per cent growth and £129.7m in revenue, operating as a vertically integrated renewable energy supplier.
Nearly 70 per cent of the firms trade internationally, while 58 per cent were founded in 2016 or later, reflecting the relatively young profile of many high-growth firms.
Policy concerns
The publication comes as senior figures in the global tech industry question the visibility and consistency of UK government support for startups on the international stage.
Speaking last week, Gary Shapiro, chief executive of the Consumer Technology Association and the organiser of CES, the world’s largest tech trade show, criticised the UK’s limited presence at the even, compared with European peers.
“The British presence has been spotty, which is surprising to me”, he said, adding that France and the Netherlands were “really well represented”.
CES figures showed the UK had 29 exhibitors at this year’s event, down sharply from more than 100 in 2019.
Shapiro added that the issue wasn’t solely financial, saying: “I see a lack of government involvement. An it doesn’t have to be money”.
The comments came despite ministers repeatedly stating that tech sits at the centre of the UK’s growth strategy.
A government spokesperson said: “A thriving tech sector is at the heart of our plans to modernise public services, grow the economy, and raise productivity across the country”.
Concentration in the capital
The Sunday Times report found that over 90 firms on the list have received external investment, raising a combined £11.3bn, with funding heavily concentrated among a small number of large raises.
London’s dominance is clear, but growth is spread nationwide, with firms also based across the rest of the UK.
Nearly a fifth of the businesses are founded or led by women.
Jon Yeomans, business editor of The Sunday Times, said the ranking highlighted continued momentum in the sector despite wider pressures.
“Despite a challenging economic backdrop, Britain’s tech sector continues to produce businesses of extraordinary ambition and momentum”.