UK leads Europe’s tech startup scene over last five years, research shows

• UK leads tech scene in Europe with 392,627 new startups over last five years

• 20% of all startups in the UK fall under Professional, Scientific and Tech category

• UK ranks 3rd overall (across total startups) with 1.8m new businesses registered in last five years and tops growth chart with 5% five-year startup growth

• TransferWise, Digital Shadows & Sonovate amongst tech startups driving significant growth

Analysing five years’ worth of data, Europe’s most popular startups map from card processing specialists Paymentsense reveals the countries leading the startup market in Europe over the last five years.

The map explores and analyses:

• No. of businesses registered between 2013-2017
• Top industries fueling growth
• 5 Year startup growth rate
• Top year for startups across all industries

According to Companies House, nearly two million startups were registered in the UK between 2013-2017 with 20% of those falling within the tech sector (392,627 in the five-year time period). 2017 marked the most successful year for startups in the UK with nearly 80k new companies registered within the tech sector and Chancellor of the Exchequer Philip Hammond claiming that a new technology firm is set up at a rate of one per hour in the UK in this year’s Spring Statement.

UK Startup Stats:

• 1,860,724 – No. of overall businesses registered between 2013-2017
• 392,627 – No. of businesses registered between 2013-2017 within the technical, scientific & professional activities sector
• 20% – Percentage of gross. Startups which fall under the ‘technology, scientific & professional activities’ sector
• 2017 – Top year for startup growth across all industries between 2013-2017
• 5.09% – 5-year startup growth across all sectors (largest in Europe)

Despite uncertainty in the economy, the government’s focus on the technology sector and UK tax regimes along with a variety of accessible and flexible finance options have proved to be powerful in providing confidence for entrepreneurs in tech businesses.

Guy Moreve, Chief Marketing Officer at Paymentsense, says:

“The UK ranks among the top five countries with the highest number of registered new businesses and has seen the biggest growth overall within the last five years. It shows that the country offers great foundations for entrepreneurs, especially within the tech sector.

Further afield, it’s fascinating to see how Europe has changed in recent times. A number of countries are now placing more emphasis on technology which has helped create a ‘golden era’ for tech startups.”

Guy advises, “Within your respective country, it’s important to ensure you fully analyse the market you’re addressing – what has worked well for recent startups and what hasn’t; It’s also worth looking at the legal and environmental conditions in order to make sure your business idea is a success”.

UK’s top 10 fastest growing tech firms over the past 4 years (according to the Deloitte Fast 50):

You can find the full research for all 30 European countries here: https://www.paymentsense.co.uk/europes-most-popular-startups/

Data Sources
The statistics used to inform this research were all sourced and provided by Statista and can be detailed further on request. All data for 2016 and 2017 are estimated, using linear derivation. Any data provided as N/A has been aggregated as zero. The research has been carried out on behalf of Paymentsense, who provide award-winning low-cost merchant services and card machines, in April 2018.

Special thanks to PaymentSense, Europe’s largest merchant service provider. Paymentsense enables over 65,000 SMEs to process over £6 billion worth of card payments per year. From card machines to semi-integrated and online payment services, Paymentsense supplies small businesses with card processing solutions that allow them to take payments in store, online, over the phone and on the move.