Issue Date: 13 August 2023
UK Rising: 22% of Non-UK Tech Firms Eye Expansion
Our latest figures show promise for the UK's inward investment position.
We surveyed ~400 high-tech businesses planning to expand, who are planning to invest over £1.5bn.
They shared their growth plans with us:
22% of non-UK tech businesses plan to expand operations to the UK
The UK is a very popular destination for tech businesses from certain markets; specifically tech firms from the US, India, Australia and a number of Asian countries (if you would like precise statistics on this, there's information on how to get in touch at the end of this issue).
It's evident that the British Isles are a hub for technological innovation and growth.
This not only highlights the attractiveness of the UK market, but it also emphasizes the broader global trend towards tech-driven business expansion.
Why is this?
Global Tech has a Proactive Approach to International Expansion
Traditionally, businesses would consolidate their domestic position before setting their sights overseas.
Today's tech landscape, however, paints a different picture.
More and more, tech enterprises – from startups to established players – seem to be looking at international expansion early in their life cycles.
This global outlook enables these companies to tap into new markets, harness international talent, and diversify their operations, positioning them for sustained growth in an increasingly interconnected world.
The UK's VC Landscape: A deeper pool
Perhaps a big reason for this, is that the UK is the third largest Venture Capital market in the world.
This is after powerhouses USA and China (though the Chinese VC market is largely insular).
The deep VC ecosystem (approaching 800 early stage funds), is complemented by supportive regulatory frameworks and recent moves such as the Mansion House Compact.
This makes the UK an attractive market to not just raise capital but also to innovate, collaborate, and expand.
The UK’s unique blend of a deep VC ecosystem, ease of doing business, tax incentives and a forward-looking regulatory frameworks offer it a significant opportunity on the global tech scene.
As these results suggest, now may be the most opportune time for inward investment professionals to capitalize on the UK's burgeoning tech marketplace.
Stay tuned for our next issue where we dive into other trends and interview those in the Inward Investment Community.
Inward Investment Insight is a newsletter, bringing the latest news, insights, and trends from the world of inward investments to professionals like you. This one is very UK focused, we'll be bringing different geographic perspectives in future.
Get involved: 2 minute survey
We'd love to hear about what you look for in early stage tech-businesses, we have a 2 minute survey that asks what criteria you look for when assessing businesses.