February Roundup 2015 – Fresh Funds & US Investment
Welcome back to Match Capital’s monthly roundup feature, your go-to spot for the latest and greatest UK startup news. This month we’ll be taking a closer look at why the technology sector and startups are flourishing despite an overall economic slowdown in Q4 2014, as well as following Boris Johnson on a trade trip to New York, and encouraging you to show off your startup on 2015′s Startups 100 index…
Tech Sector & Startups Flourish, Outperforming Rest of UK Economy
Accountancy and consulting firm KPMG has shared the results of its Tech Monitor UK survey, which reveals exciting growth for British tech start-ups in Q4 2014. While the UK economy experienced an overall slowdown, the technology sector “enjoyed robust growth”.
The survey also revealed tech startup levels hit a seven year high in 2014, following a plummet in numbers after the economic crash. Outside of technology, the picture for Britain’s start-ups appeared just as sunny, with startup survival rates on the rise. UK-wide 76% of start-ups are now making it through their first year. In the tech sector, this survival rate rises to an impressive 82%.
So probably not surprisingly, given the surge in 2013 in the numbers of start-ups registered at Companies House, 2014 saw further substantial growth for start-ups and companies, particularly in the technology industry. We believe this growth presaged an unexpected large increase in the numbers of those in employment, albeit arguably on relatively modest wage structures. After all, having a job, even at a brand new company with fairly small revenue, is better than no job at all. The raging debate over zero-hour contracts, while creating a great deal of bluster and controversy, particularly amongst politicians in an election year, no doubt had a hand in the drop of unemployment below Mark Carney’s much lauded 7% threshold, below which he had indicated would lead to interest rates being increased. Funnily enough, we’re still waiting, largely because the dramatic fall in unemployment over recent years, has not been accompanied by a surge in wage inflation. Do you agree? Let’s hear your opinions in the comments below.
Boris Reveals Record US Funding for London Tech Sector
On a recent trade trip to New York, Mayor of London Boris Johnson revealed that US investment in London’s technology sector today stands at an all time high.
On a visit designed to promote trade relations between The Big Apple and The Big Smoke, Johnson cited figures that demonstrate US investment is responsible for more than half the funding received by London’s tech sector in 2014, with the overall figure hitting $800million – that’s double London’s previous record. Get the full picture from London24.
MediaTek Launches Global £195M Fund
Taiwanese smartphone and tablet chip creator MediaTek has launched a global £195 million ($300 million) fund, MediaTek Ventures. Focusing on online services, IoT and internet infrastructure, the hugely successful East Asian processor maker will be casting its net wide, seeking opportunities in North America, East Asia and Europe. Find out more here.
2015 Startups 100 Now Open for Entries
One of the most illustrious indexes of the UK’s best and brightest new business is now accepting entries for its 2015 list. Cataloguing and celebrating Britain’s hottest early-stage companies, Startups 100 is a fantastic platform from which to showcase your business and garner significant national and international interest. Alumni of the Startups 100 index include taxi app Hailo, property site Zoopla and pop-up shop marketplace Appear Here.
Is your fledgling business ready to make a big splash in the scene? Start your application here.
With more than 800 active investors in our smart system, we do the legwork for you, tracking down your most suitable investors and helping you to showcase your startup in front of interested parties.
So against all expectations, 2014 undoubtedly saw substantial growth for startups and companies in the technology industry. We believe this growth stems from an increase in employment, the sheer number of new companies registered in 2014 combined with a buoyant employment market – where having a job, even at a brand new company with fairly small revenue, is better than no job at all. Do you agree? Lets here your opinions in the comments below.
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