World-leading location
for tech
The United Kingdom has advanced infrastructure and both social and financial capital, making it one of the leading locations in the world for tech companies. This is underpinned by effective support measures for research and development and generous schemes for investors. With world-class talent in the financial services and tech space, as well as a record-breaking games industry, fintech and games are industries with plenty of opportunities to tap into.
In 2023, the UK attracted more venture capital than any other European country. Dealroom data shows that UK start-ups and scale-ups attracted USD 21.3bn in venture capital, with France and Germany following. In the UK, London, Cambridge and Oxford attracted the most venture capital in 2023. In the period 2019-2023, Birmingham, Liverpool and Sheffield have grown their Venture Capital by 1183%, 657% and 595% respectively.
To support innovation, the UK has incentives like the R&D tax relief, which allows companies to pay less tax or get a tax refund if they undertake activities that can be classified as research and development. This gives a tax credit of 20% to most companies and 27% for loss-making R&D intensive SMEs. The Patent box is another incentive that companies can use to get a reduced rate of corporation tax of 10% on profits earned from patented inventions and other intellectual property.
For investors, there are government schemes like the Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS), which are designed to encourage investment into young and high risk companies. EIS is for more mature companies and SEIS for very early stage investments. The EIS and SEIS allow for an income tax relief on the invested capital of up to 30% and 50% respectively.
Regional opportunities
In the tech space there is a concentration in London, but there are key clusters elsewhere too. For example, Cambridge with expertise in software, biotech and mobile. Oxford is known for medtech, digital health and education. Bristol is well known for IoT, cloud solutions, haptics and bionics. Manchester is strong in media, agencies, fintech, sports and manufacturing. Cheltenham is known for expertise in cyber security, and Scotland has developed a reputation for strengths in fintech.
Looking at the dynamics of the UK tech sector, there are opportunities across a number of industries. Within services, disruptive business models and technologies are the driving force behind a world leading financial and business services tech industry in the UK. Technology is central to manufacturing, industry and the UK’s productivity targets, while a shift to the low carbon economy is stimulating demand for green technologies. Consumer lifestyles are increasingly based on goods and services that are personalised, instant, connected and environmentally positive.
Opportunities in fintech
The UK remains a leader in fintech, home to 52 of Europe's 121 fintech unicorns as of 2024, including Revolut, Monzo, and OakNorth. London continues to be a global financial hub, attracting fintechs like Klarna and Tink from Sweden. Despite a drop in transaction values to £9.75bn in 2023, UK fintechs still outperformed those in France, Germany, and others combined.
Adoption and Innovation
The UK boasts high fintech adoption rates, driven by services in money transfer, payments, and insurance. By 2028, contactless payments are expected to account for 37% of all UK payments. Innovations are fueled by AI, automation, big data, and distributed ledger technologies.
By 2028, 37% of all UK payments will be contactless compared to 19%
in 2018.
Subsector Growth
Digital banking and paytech dominate the UK fintech landscape. The "buy now, pay later" model is gaining popularity with companies like Klarna. The UK's vibrant ecosystem offers vast opportunities for growth across various subsectors.
Regulatory Support
The FCA's regulatory sandbox and the Fintech Delivery Panel continue to support fintech innovation and collaboration with large financial institutions.
Regional Opportunities
Northern Ireland is a fintech hub with significant employment in the sector. Scotland hosts over 160 fintech companies and manages 20% of the UK's assets. Wales has around 128 fintechs, focusing on digital insurance and cybersecurity.
Clusters
Business cases
Meet the Swedish businesses that are making it in the UK fintech industry.
A thriving games industry
The UK has a thriving games industry and in 2022, the industry reached sales of £4.7 billion, which represents a decline from the peak of £7 billion in 2020 but still demonstrates the sector’s resilience. Digital sales remain dominant, with mobile gaming continuing to be a significant segment. Console digital sales and mobile gaming remain key drivers of the market (sources: Ukie and Omdia).
The games hardware segment has seen continued evolution. While the dramatic growth of 2020 has stabilized, the market remains robust. The introduction of next-generation consoles like the PlayStation 5 and Xbox Series X/S has influenced hardware sales, with renewed interest in gaming technology.
The UK remains home to several internationally renowned game developers. Notably, Rockstar Games continues to be a global powerhouse with franchises like Grand Theft Auto. The industry has seen further international collaborations and investments. In recent years, companies like Tencent have increased their investments in UK game studios, and mergers and acquisitions have reshaped the landscape.
In 2020, console
hardware sales reached £853m, up 74.8% year on year.
Talent and regional opportunities
As of 2022, the UK games industry employed approximately 22,000 people directly, with an estimated 49,000 jobs created indirectly, showing continued growth and economic impact (source: Ukie). The talent pool remains strong, with universities continuing to offer specialized games development courses.
In England there are several strong games clusters, particularly in London, the North West including Manchester and Liverpool, Guildford, Leamington Spa, the South West including Bristol and Cornwall.
Looking beyond England, Scotland for example boasts the UK’s first Centre for Excellence in Computer Games Education located at Abertay University in Dundee, which is home to one of the highest ranked degrees for video games in Europe.
In Northern Ireland the gaming industry is developing a cluster that has been spurred on by the creation of Pixel Mill, a collaborative and accessible co-working space in the Ormeau Baths Innovation Centre. Hypixel Studios’ establishment in Derry-Londonderry, following its acquisition by Riot Games in 2020, is another major addition to the games sector in Northern Ireland.
In Wales, most games companies are based in Cardiff and Bridgend. One of the better known Welsh games companies is Wales Interactive.
Business cases
Meet the Swedish businesses that are making a mark in the UK games industry.
