Tech firms lead business growth across Britain as one in four of all high-growth companies are startups
Of the 175 fastest-growing UK companies – firms that have been able to grow their revenue 20 per cent or more, around a quarter (44) companies are technology companies, according to new research shared with City PM today.
A significant number of these are fintechs.
This includes payments giant Wise, which has managed to grow turnover by an average of 75.3 per cent per year over the last five years, and digital wealth manager Nutmeg, which has grown its revenue by an average rate of 50 per cent per year, although Nutmeg have now been acquired by JPMorgan.
The UK and in particular London now has a well-established reputation as a global leader for fintech businesses, the Hazlewoods research showed.
Venture-capital firms invested $4.5bn in UK-based fintech companies last year, making the country second only to the US globally in terms of venture capital fintech investment.
Video game space
Several UK video game companies among the list of 175.
The UK is home to a rapidly expanding video games industry which has seen major revenue growth.
This includes British video game companies Keywords Studios, Sumo Digital and Team17, with average annual revenue growth of 53.5 per cent, 39.5 per cent and 54.6 per cent respectively over the past five years.
“The UK’s tech sector has seen remarkable growth in the past five years, with the country starting to become a hotbed of talent and entrepreneurial vision,” said Ryan Hancock, Director at Hazlewoods.
“The UK is home to the some of the most innovative companies in the world with exciting growth trajectories ahead. However, capturing that growth at a significant pace every year is not an easy task,” he shared with City PM today.
“Perhaps we need a few more high-profile business leaders like Jeff Bezos, Mark Zuckerberg or Steve Jobs that have acted as role models in the US and inspired more entrepreneurs to keep scaling up their business rather than seeking an early exit,” Hancock concluded.