News / Tech
Bristol firm among top ten scaleups driving tech investment in UK
The resilience and innovative spirit of the UK’s tech sector has shone through in a year that has seen investment soar despite economic challenges.
Nationally, 2020 saw a record level of venture capital (VC) investment in British companies, according to the latest Tech Nation report, with figures reaching $15billion, £200m higher than in 2019.
Bristol’s position as a leading player in one of the UK’s fastest-growing sectors continues, with the city ranking third in the UK for VC investment, attracting £339m in 2020 alone.
Graphcore, a deep tech company based on Wine Street, is among the top ten ‘superstar’ scaleups of last year. The firm secured $222m, the eighth highest in the country on a list otherwise dominated by London-based companies, which altogether drove a fifth ($3.5bn) of UK tech VC investment.
Nigel Toon says deep tech represents “the coming together of many great British attributes” – photo courtesy of Graphcore
Nigel Toon, the CEO of Graphcore, says: “The UK is continuing to punch well above its weight in terms of building and growing world-class technology companies, even in the midst of these unusual and uncertain times. We are, of course, delighted that Graphcore is identified as one of the standard bearers for this national success story.
“Deep tech represents the coming together of so many great British attributes – our reputation for innovation in science and engineering, the excellence of our academic institutions and, most recently, our status as a leading player in the development of artificial intelligence.”
In its seventh year, the Tech Nation report lifts the lid on tech, revealing how the sector has changed, who the top performers were through the last year, and the challenges and opportunities the UK faces as it navigates out of the pandemic and leaving the EU.
It highlights growth in the South West, with the region attracting a total of £525m in 2020, up from £458m in 2019.
The report also shines a light on inequalities in the sector and the over-representation of white, male founders in securing VC investment. Women make up 25.5 per cent of the tech workforce – and 49.8 per cent of the entire UK workforce – and in the last decade, only three per cent of VC funding went to all-female founding teams while 68 per cent went to all-male founding teams.
With tech becoming increasingly fundamental to UK economic growth, the report authors recognise significant challenges ahead in an increasingly competitive global landscape. These include shortfalls in research and development (R&D), with some private overseas companies investing more in R&D than the UK does as a nation, and the “levelling-up agenda” aimed at addressing the current disparities holding the sector back.
Commenting on the report, Gerard Grech, founding chief executive of Tech Nation, says: “This year has highlighted the UK tech sector’s enormous resilience and world-beating innovative spirit. In the face of a major global crisis, it has not only survived; in many areas, it has boomed. From edtech to healthtech, tech scaleups are at the centre of rebuilding the British economy and setting new standards worldwide.
“Now the focus turns to the future, as the UK pivots to a wider global role. Developing Britain’s AI-powered deep-tech is especially critical. Much of our future economy will be built on this new technology that leverages machine learning for faster innovation. Bold investment is needed in R&D to boost Britain’s new deep-tech companies and ensure our global competitiveness.
“These are truly exciting times for UK tech. The successes of the past decade have shown what the UK is capable of when policy foresight, investment and a diverse and ambitious pool of talent come together. By continuing to set our sights high, the next decade promises to be the most innovative yet.”
Main photo by Josh Rundle
Read more: Boosting diversity in Bristol’s tech sector
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