The number of new technology companies incorporated in the first quarter of 2026 surged to a record high, despite geopolitical tensions and uncertainty, according to leading audit, tax and consulting firm RSM UK.

RSM’s analysis shows there were 16,887 new tech incorporations in Q1 2026, up 39% from 12,184 the same quarter last year, and increasing 15% from 14,699 in Q4 2025.

All UK regions were up on the previous year, with London accounting for the highest number of new tech incorporations at 8,236.

“The UK’s tech industry continues to show promising growth despite current geopolitical uncertainty, while other sectors pull back on investment,” Ben Bilsland, partner and head of technology industry at RSM UK, said.

“For tech entrepreneurs, the UK is viewed as a stable place to invest and grow, which is crucial in the current volatile environment. The UK’s proven track record in the tech space and thriving tech ecosystems, have helped to solidify its position as best in the world to do business.

“While the figures are promising – challenges remain for UK tech. Slow planning regulation, skills shortages and high energy costs will act as barriers against transformational growth. We have recently seen US tech companies begin to stall on promises to invest in the UK. If this trend continues, a reduction of overseas capital into the tech industry will hinder growth.

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“With further headwinds looming, UK tech leaders need to closely monitor the broader economic environment, particularly if they’re exposed to supply chain disruptions and volatile energy costs. Tech companies that are best placed to ride the storm will be those with strong energy resilience, flexible supply networks and disciplined capital allocation.”

Scotland saw a 70% year-on-year increase in tech incorporations in the first quarter of 2026, with 687 compared to 405 in 2025, the largest year-on-year increase.

This also marks a quarter on quarter increase, up 37% on the last quarter of 2025’s 502 tech incorporations. This was the largest quarter-on-quarter rise beating out the South West (20%) and London (19%) by a significant margin.