New data suggests that the number of tech startups being founded in Scotland last year rose by 12% over the period.
Audit and consulting firm RSM found that 545 tech businesses were incorporated across the country last year, compared to 485 founded in 2019.
Scotland ranks third in the list of regions that reported tech startup growth, sitting behind the West Midlands and London.
Despite this apparent rise in founded tech start-ups, research conducted by Plexal and Beauhurst in October last year saw that, in general, British tech startups actually struggled financially due to the pandemic.
The research indicated that more than 1000 startups filed for administration since the start of lockdown, however, this latest data from RSM indicates a resurgence of growth for technology start-ups in the UK.
Commenting on the results from the research, David Blacher, head of RSM’s technology and media team, said: “Despite the acute impact of the Covid-19 and lockdown restrictions, it’s encouraging to see growth in the UK tech sector as entrepreneurs seize the opportunities that the pandemic has revealed for technology to support new ways of working and digital entertainment.
“In 2020, the UK attracted $15bn in investment and sits third internationally for tech incubations according to the latest Tech Nation report – demonstrating that the UK continues to stride ahead of other European countries, despite Brexit, and remains the first-choice tech hub after the US and China.
“London will always be a target for investment due to the financial and private equity infrastructure; but it’s great to see double-digit growth in the West Midlands, Northern Ireland and Scotland where thriving ‘deep tech’ and gaming industries are fuelling regional growth.”
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Britain’s tech sector, in general, saw growth in 2020, attracting record levels of venture capital investment, according to the annual Tech Nation Report released in March.
Despite the impact that Covid-19 has had across sectors, combined with the uncertainly over the impact of Brexit, data showed that investment in the tech sector reached $15 billion (£11bn) last year, nearly $200 million higher than 2019.
The report showed that last year, Edinburgh attracted £91 million in VC funding, ranking it fourth in the UK through innovation hubs which helped driving investment in the UK last year. Glasgow also experienced a landmark year for venture capital investment, with £35 million secured across 2020.