UK tech scaleups seem to have been resilient during the COVID-19 pandemic but there are still challenges ahead. A new report by Beauhurst in conjunction with the Scaleup Institute has identified that the UK has seen more scaleups breaking through the £10m+ turnover mark with a 37% increase year-on-year.
The report includes both tech and non-tech startups, highlights out of 33,860 scaleups in the UK, none have ceased operations, 13,965 scaleups have increased by headcount whilst 7,390 have increased in revenue and headcount.
Here are some of the highlights from the report and some things you should know about the scaleups scene in the UK.
Tech scaleups count for 15% of the total UK scaleups.
The report found that SaaS (software-as-a-servce) companies are currently leading the pack of tech scaleups. Many SaaS companies have thrived during the 2020 COVID-19 pandemic due to the remote-friendly models and businesses looking to change the way they operate.
The companies securing the largest funding rounds are in healthtech, energy, delivery and finance.
UK scaleups successfully raised £5.32b in equity in 2019, 1.6x more than 2018. In 2020 so far the report shows £2.7b has been invested into scaleups. In 2019 banking service Greensill raised two of the largest deals seen – £615m and £511m.
A close 2nd place, Babylon (an online healthcare service) raised £454m led by Saudi Arabia’s public investment fund.
Food delivery scaleup Deliveroo raised £449m in a round led by Amazon.
Scaling companies remain in the hands of British men regardless of a drive for equality and diversity in business.
Although the number of female-led scaleups has doubled in recent times, only 10% of scaleup founders are women.
61% of scaleups still operate without a single female director and 48% of scaleup businesses still do not have women on their board or executive team.