The UK tech sector's value has reached a record £817bn this year, Despite a sharp downturn in venture funding for UK tech start-ups, according to HSBC analysts.
Research indicated that British start-ups now have a combined value of $996.8bn, an increase from $988bn the previous year, indicating resilience in the sector despite global challenges.
However, venture capital funding for start-ups worldwide has seen a significant decrease due to rapid rate hikes affecting the availability of affordable capital.
Specifically, investment in London-based start-ups decreased to $8.6bn in the first nine months of the year, a sharp drop from the $19.2bn during the same period in the previous year.
Across the UK, firms have secured $14bn, a marked slowdown from the $31bn raised in 2022.
The data was published via the 'Data Commons' initiative by Dealroom and HSBC Innovation Banking, which aims to provide insights into the UK's start-up and innovation sector's health.
Data Commons intends to increase the amount of research on the UK tech sector to get a better idea of the state of funding and innovation.
Erin Platts, chief of HSBC Innovation Banking, commented: “Given the dynamic, fast-paced and unpredictable nature of the innovation ecosystem, the availability of open-access, real-time and accurate data is essential for making informed decisions.
“To date, innovators, investors, policy-makers and decision-makers have found it challenging to build and access a complete picture of the state of UK innovation.”