Cambridge declared the UK’s regional tech city

Cambridge is the country’s leading tech hub thanks to the high amount of venture capital funding and startups worth more than £750m.

The city contains startups and scaleups like GeoSpock, Riverlane, Fetch AI and Healx, which could be a pull factor for homebuyers and renters alike in the years to come.

Manchester is the second-best tech hub, as the number of tech jobs increased by 165% in the city in 2021.

Other strong cities are Oxford, Edinburgh and Bristol.

The analysis for the UK’s Digital Economy Council comes from Dealroom and the job search engine Adzuna.

Saul Klein, partner and co-founder at LocalGlobe, said: “It’s taken 20 years for UK tech to get to the starting line and things start to get interesting in the next 20 years.

“We have all the ingredients to become the leading tech ecosystem in the world, with record levels of R&D, financing and established tech hubs across the country from New Palo Alto in Kings Cross, to Cambridge, Edinburgh and Manchester.

“But the key differentiator for investors in future will be a willingness to take an ethical approach to building businesses. We can be world-class in this and over the long term this will set our companies apart from those built in the US and China.”

In the UK as a whole, investors pumped £29.4bn into UK startups and scaleups in 2021 despite the impact of covid-19, up from £11.5bn in 2020.

This compares to £14.7bn invested in Germany and £9.7bn in France.

There was a 50% increase in job vacancies in UK tech compared to last year, with 160,887 in November.

A total of 35% of the UK’s unicorns (startups worth more than $1bn) are based outside London.

Unicorns created this year include challenger bank Starling and core banking fintech firm Thought Machine.

The government’s digital minister Chris Philip said: “It’s been another record-breaking year for UK tech with innovative British startups helping solve some of the world’s biggest challenges.

“Capitalising on this fantastic investment across the country is a crucial part of our mission to level up, so we are supporting businesses with pro-innovation policies and helping people to get the skills they need to thrive in this dynamic industry.”

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