UK has ten times more tech unicorns than a decade ago, report finds

Tech companies worth more than $1bn have soared in the last ten years according to new research

The number of tech unicorns in the UK, companies worth more than $1bn, has skyrocketed in the last ten years according to a new report.

Research from the UK government's digital economy council and data company Dealroom.co found that the number of unicorns in 2020 stood at 81, up from just eight in 2010.

It also points to a further 132 businesses which are on the cusp of achieving this status, while funding from venture capital investors was found to have jumped from €1.4bn in 2010 to €13.6bn in 2020.

"These latest figures show the UK's tech scene is booming and I'm delighted to see so many of our stellar scale-ups racing to becoming the next $1bn businesses," digital secretary Oliver Dowden said.

"This government is unashamedly pro-tech and we're investing heavily in world-class digital infrastructure and skills to back talent across the country and bring about a golden age of UK tech."

The majority of the UK's tech unicorns were found to be based in London, while Cambridgeshire and Oxfordshire have 10 and 11 potential future unicorns respectively.

Germany had just 31 unicorns in 2020 and venture capital funding for the next tech giants of 5.8bn euros, while France had 17 and funding of 5bn euros.

The managing director for Europe at global MSP Ensono, Barney Taylor, believes the report represents the UK's position as a tech leader.

"The tech industry is rapidly becoming the runaway success story of the UK economy. It is little wonder investors are increasingly drawn to UK technology," he said.

"Powered by a strong R&D landscape, world-leading universities, and solid government backing, there are fantastic prospects for growth in UK tech firms.

"As we emerge from the pandemic, there is a real opportunity for the UK to lean into these tech credentials.

"UK businesses are pushing forward world-leading advancements in everything from big data driving a more intelligent healthcare system, to the use of AI and cloud technology to scale up and streamline online shopping."