The UK tech sector's value has soared to $1.3 trillion, with AI startups raising $1.03 billion in Q1 2024 alone. This represents the largest fundraising in three years, and AI companies made up 27% of total UK venture capital. The sector thrives on enterprise software investments, particularly in London, which significantly outperformed other regions. Despite this success, AI leaders express concerns about capital and talent, with some considering relocating due to the competitive landscape, highlighting a need for government support through funding and better immigration policies.
While the UK excels at startup creation, we struggle to retain our most promising companies as they scale, said Carolyn Dawson, CEO of the Founders Forum Group.
Homegrown AI champions like Wayve, Darktrace, and Deepmind must turn to the US for investment and exit opportunities.
To help AI companies scale, half of AI startup leaders said they wanted to see the introduction of government-backed funds, along with policies to directly reduce the cost of talent.
London raised more than ten times as much as any other UK region during 2024 - although the North West and Scotland did well too.
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