With recent figures showing the UK has overtaken China on investment secured by tech start ups, with more than £12 billion in venture capital funding raised in the first five months of 2022, it’s a good time to be in the tech sector.
And further proof of that comes with the news that the UK government is setting up a competition to find a company to run a new support programme for tech entrepreneurs.
The successful provider will receive £12 million Digital Growth Grant to deliver the scheme, which will tackle challenges facing small and scaling tech firms and aims to help the UK’s early-stage tech firms build on their success. Organisations can apply individually or join together to bid to become the provider, and there will also be helping to drive up diversity and representation in the tech workforce through skills training and sector networks.
According to Digital Minister Chris Philp, The success of our startups and scaleups has driven the UK ahead of Europe and China to be second in the world for tech investment this year. We want every corner of the country to feel the benefits of tech success and we’re looking for an industry partner to help make this possible through the Digital Growth Grant.
The Growth Grant aims to achieve the following:
- Deliver support services to the digital sector, with a focus on emerging technologies like artificial intelligence, advanced computing and quantum. These services should address key challenges faced by a wide range of companies from the seed funding stage to their first or second round of financing.
- Grow regional support networks. Activities should improve local investment, innovation and business growth; be tailored to the needs and tech specialisms of different areas; and be developed in partnership with local bodies and existing tech groups.
- Ensure founders and firms can access digital entrepreneurship training with tailored advice to help start and grow a tech business.
- Clearly signpost startups and scaleups to existing initiatives in the private and the public sector across the UK that can help them access finance, talent and markets.
The launch of the scheme – to which companies may apply until August 15th – comes two weeks after Labour announced it was launching a review into the support environment for growing tech businesses in the UK. The review, commissioned by Labour’s shadow chancellor Rachel Reeves, will involve a panel of industry leaders led by Lord (Jim) O’Neill, who will focus on the role of universities, diversity among entrepreneurs, and access to long-term finance for UK start-ups.
The UK remains a vibrant place to grow a tech business, and that growth can be supported by working with the right partners. At Paul Beare Ltd, we’re here for all your needs, and you can contact us for help and support in a number of areas, from tax and payroll to accounting and banking.