Last year, 144,596 tech companies were launched in the UK, a 52% increase on the year before. London remains the country’s tech powerhouse with nearly 52,000 new businesses launched in the capital alone, but places like Manchester, Birmingham and Belfast made big gains as emerging hotspots.
After the US and China, the UK is one of only three countries in the world with a tech sector valued at over $1 trillion. It is also home to a third of all of Europe’s unicorns (private start-up companies valued at over $1 billion).
Where tech companies thrive
Unsurprisingly, our analysis revealed that London is home to the greatest number of tech businesses in 2024, with just shy of 52,000 and a 58% growth rate over the year.
London’s access to investment makes it a city well placed and set up for tech entrepreneurship. It already has a well-developed tech ecosystem, a history of innovation, a highly skilled workforce, and a consumer market open to new technology.
Manchester is a notable runner up, with 3,235 new tech businesses registered and strong YoY growth at 54%. The Northern powerhouse is home to several unicorns and entrepreneurship is supported by purpose-built innovation districts like Bruntwood SciTech and Enterprise City’s live-work-play ecosystem.
Notably, Poole stood out for its tremendous 89% growth in tech companies over 2024, landing them with 867 new tech companies, just 34 shy of Bristol, which had 901. Considering Poole’s population of just 49,300 (versus Bristol’s 483,000), this is quite a feat.
| Location | Total companies 2024 | Growth |
| London | 51,943 | 58% |
| Manchester | 3,235 | 54% |
| Birmingham | 2,637 | 40% |
| Belfast | 1,818 | 86% |
| Glasgow | 1,639 | 59% |
| Cardiff | 1,249 | 43% |
| Ilford | 1,199 | 64% |
| Leeds | 1,082 | 17% |
| Leicester | 1,067 | 52% |
| Nottingham | 977 | 41% |
| Liverpool | 931 | 37% |
| Edinburgh | 922 | 58% |
| Bristol | 901 | 17% |
| Poole | 867 | 89% |
| Sheffield | 779 | 46% |
| Luton | 744 | 73% |
| Harrow | 722 | 42% |
| Bolton | 719 | 33% |
| Reading | 686 | 46% |
| Mildenhall | 685 | 67% |
Young entrepreneurs are making their mark on the tech industry
According to the Generation Entrepreneur Report, 58% of people between 18 and 35 in the UK own or are interested in owning a business. This young entrepreneurial spirit in tech is reflected in our data – last year, founders under 30 accounted for 40% of all new tech companies started in the country.
According to research, the driving forces behind becoming an entrepreneur for most young people is to make money (52%) and to fulfil a personal vision or passion (29%), with fulfilling a personal vision or passion more important among women than men.
| Age | Number of founders | % of total |
| 18-25 | 10,607 | 18% |
| 26-30 | 13,134 | 22% |
| 31-40 | 17,713 | 29% |
| 41-50 | 12,916 | 21% |
| 50 | 9,635 | 16% |
Women in the tech industry
When it comes to gender, the data is less positive. Despite the tech sector having some of the most funded new startups, women are massively underrepresented in the sector.
According to our data, female entrepreneurs represent just a fraction of 2024 tech founders.
London had the greatest number of female tech founders, with 4,601, while Glasgow had the highest YoY proportion of female founders, at 11%.
| Cities with the greatest number of female tech founders: | ||
| City | Female founders | % of total founders |
| London | 4,601 | 9% |
| Manchester | 286 | 9% |
| Birmingham | 207 | 8% |
| Glasgow | 174 | 11% |
| Belfast | 155 | 9% |
The need for stronger support ecosystems in tech
Although 2024 was another year of strong growth for the tech sector, it’s clear that geographic and social challenges remain to achieve a truly diverse entrepreneurial environment. The disparity between number of male and female founders, combined with a lower rate of growth in otherwise innovative hubs like Leeds (17%) and Bristol (17%) underscore these challenges acutely.
To level the playing field, we need to focus on:
- Financial backing and government schemes
Government schemes such as Start-Up Loans and Innovate UK Smart Grants offer vital funding for early-stage businesses and innovative projects, while also providing mentorship and business development support.
- Incubators, accelerators, and mentorship
Incubators and accelerators, like those run by SETsquared and Barclays Eagle Labs, deliver tailored programmes, expert guidance, and opportunities for collaboration, helping tech startups to refine their business models and scale efficiently.
- Attracting international talent
Programmes like the Global Entrepreneur Programme (GEP) attract international talent and provide bespoke support for scaling innovation-rich businesses from a UK base.
- Building a connected ecosystem
Initiatives such as Innovate UK’s Start-up Connect foster a connected ecosystem, linking entrepreneurs with resources, expertise, and sector-specific support.
The UK’s technology sector is flourishing well beyond London, with regional cities such as Manchester, Birmingham, and Belfast establishing themselves as major innovation hubs. These cities, supported by ambitious entrepreneurs and significant investment, are driving rapid growth, while even less-expected locations like Poole and Luton are making their mark on the national tech landscape.
This momentum signals not only expansion but also transformation across the UK tech ecosystem. As the sector evolves, addressing ongoing challenges—such as disparities in gender representation and uneven regional support—remains essential. Enhancing infrastructure through targeted funding, robust mentorship programmes, and international partnerships will be crucial to ensuring the UK maintains its position as a global technology leader, while also fostering greater inclusivity.
The path forward is clear: by supporting emerging founders in every part of the country, the UK can build a tech future that is more innovative, diverse, and balanced than ever before.
Note: Tech sectors included in this report include software development and IT, data processing and hosting, telecommunications and network services, digital and online services, electronics and hardware, ecommerce and digital platforms, research and development, advertising and media tech, and consultancy and professional services. Data was collected by analysing the number of tech companies launched in the UK in 2024 compared to the year before.
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