2020 – Every Half Hour Unveiled a Fresh Tech Startup

UK Tech Start‑ups: A Storm of Innovation

When the pandemic hit, a wave of new tech businesses surged across the UK, turning what could have been a bleak period into a hotbed of opportunity. According to government figures, almost 20,000 founders went ahead and launched fresh tech ventures in 2020 – the most in any year since 2017.

Massive Growth Numbers

19,465 new businesses registered in the Information & Communication sector (software, web, coding, consultancy).
That’s roughly one tech startup every 30 minutes all year round.
In March 2021, tech job openings spiked to 116,000 – a near‑recovery to pre‑pandemic hiring levels.

Why It Matters

Digital Secretary Oliver Dowden summed it up brilliantly: “We wanted to double the pace of new tech businesses, and we did. Tech will lead the way in building a better future, and it’s fantastic to see thousands of jobs popping up across the country.”

The government is now aiming to be the most pro‑tech country ever, announcing a raft of support measures, a fresh talent‑pull strategy, and ten tech priorities to lead the way.

Sector Comparisons

Information & Communication: 19,465 new firms
Production: 14,435
Finance: 10,730
Arts, entertainment & recreation: 10,830
Real estate: 12,135
Motoring: 6,405
Health & social care: 5,915
Agriculture: 4,955
Education: 3,125

Overall Business Births

Across all sectors, 407,505 businesses sprang into existence in 2020. That’s the biggest yearly total since 2017, with business births climbing an average of 4 % year‑on‑year over the past four years.

In short, the UK’s tech scene didn’t just weather the storm – it had a full‑blast tech factory on the other side, proving that adversity can indeed spark opportunity.

Cause and effect

2020: The VC Explosion That Wasn’t Just Numbers

When 2020 hit, VC funding in the UK rumbled up to a jaw‑dropping £15 bn for tech—outpacing France and Germany combined. Even with the tangled mess of the pandemic, Crunchbase still logged $5.7 bn poured into startups launched worldwide, proving entrepreneurs were still hungry for success.

The Pandemic’s “Silver Lining”

Office‑to‑home made remote work the new normal.
Kids switched to virtual classrooms—parents needed tech.
Shopping moved online, giving e‑commerce a boom.

Speedies didn’t wait: the crisis turbo‑charged digital adoption, creating a playground for both fledgling ventures and established tech giants.

Top Ten Life‑Saving Startups of 2020

Insurance platforms tackling coverage gaps.
E‑commerce hubs that turned bedrooms into boutiques.
Online payment systems that were the lifeblood of digital transactions.
Health‑tech innovators keeping hospitals running.
Mobility apps that reimagined commuting.

These categories were the home base for the most capital‑rich startups springing from the year—proof that necessity really is the mother of invention.

Tech Jobs on the Rise

Across the UK, the tech workforce has surged 11% in just two years, approaching three million positions. And here’s a kicker: a third of those roles (around 37%) aren’t technical at all—they’re legal, marketing, HR, or admin positions supporting the tech ecosystem.

All of this stems from the wave of new tech firms formed during that period—showing that when you combine funding, urgency, and innovation, you get a workforce that’s not only growing but diversifying.

Tech hubs come into their own

UK’s New‑Wave of Businesses: The Data Speaks, and It’s a Story Worth Sharing

Recent numbers from the Office for National Statistics (ONS) show that fresh companies are popping up everywhere across the UK—and no, it’s not just London. Here’s the scoop.

Where the Births Are Happening

London: 107,310 brand‑new ventures (the reigning champion)
South East: 54,730 start‑ups, proving the area is still a hot attraction
North West: 43,420 businesses, showing the region’s entrepreneurial spark is alive
Yorkshire & Humber: 25,270 enterprises, a solid contribution
South West: 26,520 new companies, keeping that coastal vibe strong

So, if you think only the capital is the playground for business, think again—you’ll find a bustling hive of opportunity spread across the map.

Breakthrough Tech Investment Outside London

In 2020, the tech scene didn’t just stay in London’s orbit. Four cities—Oxford, Leeds, Newcastle, and Glasgow—set new records for venture capital (VC) flow.

Key Takeaway

These hubs attracted enough funding to say: “Hey, Britain’s next big tech stars are being born right here, not just in Soho.”

Gerard Grech, Tech Nation CEO, on the Momentum

Even in a pandemic‑heavy world, the UK’s entrepreneurial fire doesn’t die down. The start‑ups that cropped up over the last few months will likely be the ones to watch in the years ahead. Think of it like this: just as Zoopla, DeepMind and Wise emerged after the 2008 crisis, the data gives us a hopeful headline: the next wave of big tech in the UK will birth during this current one.