Our sister company, CFPro, today published the results of a Deloitte Survey of UK CFOs discussing their concerns, areas of focus and how they intend to prepare for continuing economic instability. Although the consensus is that UK CFOs are concerned about the long-term effects of Brexit, in the short-term, they’re focussing on managing the growing level of skills shortages and managing cash flow within their organisations while at the same time, keeping an eye on innovations that continue to drive their business towards growth.
On the home front, businesses push forward to sustain their bottom line through a period of uncertainty. But there’s some good news that’s just been made public: US West Coast investment into British Tech companies is on the rise – in fact, it’s at a record all time high.
According to a report produced by data-giant Beauhurst and global law firm Penningtons Manches, investment from the West Coast of the US into British tech has increased to record levels over the past eight years.
“Since 2011 the numbers of deals backed by West Coast investors (which are dominated by Silicon Valley firms) has grown by 252%. In 2017, West Coast investors were involved in 74 deals with UK companies, totalling £1b in value and representing around 5% of all announced deal numbers into independent UK startups and scaleups that year. This is up from 59 deals in 2016, and 21 in 2011.” – Beauhurst.
In fact, according to the third annual Tech Nation Report, the UK tech industry leads in Europe, attracting £28bn in technology investment since 2011, compared with £11bn in France and £9.3bn in Germany, yielding the UK as “a Great British Success Story”, according to UK PM Teresa May.
But what are they doing?
In a recent report by PwC, the team forecasts that “VR in the UK entertainment and media industry alone will reach a value of £801m by 2021,” making it the fastest growing and largest VR industry in EMEA. They also predict that UK internet advertising will remain the biggest market in EMEA, reaching £14.4bn by 2021 while also remaining the biggest video games market in Europe. Attach to that the prediction that consumer spend on video games will overtake all spending on books by 2021, we’re living with a very big, very real tech reality – and an opportunity for massive growth for companies who are positioned in the right direction, and in the right market.
While there may be some signs that British entrepreneurialism may be slowing down due to hesitance in the economic outlook for the near future, there is no sign of slowing down in the drive for innovation within the UK’s tech industry, and the international market’s appetite to be part of this growth.
Poised for Growth
City a.m. reported that the UK tech industry pulled in more than three times as much investment as any other European country post-Brexit with the city producing “world-class companies in fintech, like Funding Circle and WorldRemit, and consumer tech, like Deliveroo.”
So why the interest?
Steve Varley, EY’s UK chairman, says: “At a time when investor sentiment towards the UK as an attractive destination is weakening, opportunity arises in the shape of digital. An urgent digital drive is needed with a renewed focus on digital skills, infrastructure, and investment in research and development will help to shape the UK as an attractive environment, to maintain its competitiveness in a post-Brexit world.”
And the trend continues. Major US companies including Amazon.com, Facebook and Google have all increased their operations in Britain since the referendum, recognising the UK’s sense of innovation and digital drive.
But to succeed beyond Brexit, entrepreneurs and business leaders will need to keep changing. Things may be great now, which is why we’re at the forefront, championing company growth strategies that will see them explore exponential success – beyond the risk, beyond the challenge, safely and securely.
If you are ready for exponential growth, and you need help getting there – then you need to talk to us.