New UK tech companies reach five-year high Q1 2024
New UK technology incorporations reached a five-year high* in Q1 2024, demonstrating the sustained growth and strength of the UK tech sector, according to analysis by leading audit, tax and consulting firm RSM UK.
The data shows the number of UK tech incorporations was up 11% to 13,802 in Q1 2024, from 12,441 in Q1 2023, and rose 4.4% on the previous quarter (13,218). This follows a record-breaking year in 2023 with 51,017 new tech incorporations.
Ben Bilsland, partner and head of technology industry at RSM UK, said: ‘2024 got off to a great start with the largest number of UK tech incorporations in five years. UK tech continues to go from strength to strength, despite ongoing macro-economic uncertainty in the UK and overseas. A key factor is the strength in depth of the UK’s tech sector. Our advice to tech entrepreneurs is to engage with tech businesses around them to collaborate, innovate and grow together.’
London accounted for the highest number of incorporations at 7,253 in Q1 2024, up 16% from 6,278 in Q1 2023. The figures cement London’s position as a global hub for tech businesses.
Ben Bilsland continues: ‘High rates of borrowing and uncertainty around inflation can have a detrimental impact on the risk appetite and patience of investors. As interest rates stabilise, inflation slows, and business confidence improves, this bodes well for further growth in the sector. The development of innovative technologies requires a significant amount of investment and time, so an increase in both of these factors to enable the creation of new products will be hugely welcomed by UK tech companies looking to grow.’