Article

KEY POINTS

  • In 2023, British startups raised $21.3 billion, their third-highest total on record, according to a report from Dealroom and HSBC Innovation Banking.
  • With a long-standing startup ecosystem, top-tier universities and international investors, the U.K. has managed to become a major tech hub.
  • But its status could be at risk from a slew of challenges, including the fallout from Brexit and very low numbers of tech stock market listings.

The U.K. is the No. 1 country in Europe for tech by many accounts.

In 2023, British startups raised $21.3 billion, their third-highest total on record, according to a report from Dealroom and HSBC Innovation Banking.

It’s the No. 1 location in Europe for funding — with France coming in second, raising $9.2 billion last year — although it remains well behind the U.S. and China.

In the mid-2010s, the U.K., and London in particular, saw a boom of startups in financial technology, or fintech, given the city’s importance to the global financial services market. Since then, major companies across different sectors have developed, spanning food delivery to cybersecurity.

The U.K. was also the birthplace of two, now foreign-owned, major tech firms: chip designer Arm and artificial intelligence firm DeepMind.

This startup ecosystem, along with its top-tier universities and international investors, enabled the U.K. to become a major tech hub.

But its status could be under threat.

The country is facing a slew of challenges, including the fallout from its EU exit, which formally took place in 2020, and very low numbers of tech stock market listings.

This is an excerpt from ‘CNBC’. To continue reading, click here.

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