Region’s tech start-ups jump by 43% in 2021
The number of new tech companies incorporated in the North West jumped 43% per cent in 2021, a new report by leading audit, tax and consulting firm RSM UK has revealed.
A total of 2,371 tech businesses were incorporated in the region last year according to an analysis of data held by Companies House, up from 1,658 in 2020.
Nick Wyatt, corporate finance partner and head of media and technology for RSM UK in the North West, said the region seeing the most tech incorporations outside of London and the South East.
“After a slow down in the number of tech incorporations in 2020 as a direct result of the uncertainty caused by the pandemic, the 2021 statistics show an unprecedented level of start-ups,” said Nick.
The pandemic has changed our habits and encouraged more businesses to embrace technology which has meant the tech sector has thrived in conditions where other industries have either slowed or even declined.
‘The North West has long been one of the UK’s most active regions in the tech sector, boasting an impressive number of successful tech companies that began life in the region and still call it home today.
“This already booming ecosystem and the flexibility of hybrid working has led to record levels of tech talent and entrepreneurs relocating to the region.
“Existing technologies such as edtech and healthtech have been embraced during the pandemic, and we are also seeing the emergence of new technologies like the metaverse and crypto, with North West start-ups continuing to lead the way in innovation.”
Overall, UK tech incorporations increased 62% in 2021, from 23,579 to 38,240.
In addition, the UK tech sector this year became only the third economy, alongside the US and China, to reach $1 trillion in value after a surge in growth throughout the pandemic.
The UK’s digital industry is now worth more than double Germany’s equivalent, its closest European rival.