New UK Grant to Help Support Next Generation of Tech Startups

Michael Behr

12 April 2022, 10.45am

Open to organisations across the country, the new grant aims to promote the development of upcoming UK tech companies.

The UK Government has launched a new £12.09-million grant competition to help develop tech startups and scaleups.

The Digital Growth Grant aims to build the support networks around new digital and tech companies, opening up access to skills training and advice, as well as improving regional support networks and services over two years.

With the UK tech sector hitting $1 trillion, making it the third largest in the world, the grant will help develop the next generation UK tech companies.

As such, the Digital Growth Grant is looking for companies that deliver support services to the digital sector, particularly in transformative or emerging technologies. These services should address key challenges faced by a wide range of companies from the seed funding stage to series A/B, their first or second round of financing.

In addition, the organisations should be involved in growing regional support networks for tech startups and scaleups.

Their activities should deliver concrete improvements in three or more areas identified by the Department for Digital, Culture, Media and Sport’s (DCMS’s) Regional Ecosystems report as crucial to the success of the digital economy: investment, skills, innovation, infrastructure and business growth.

The support should be tailored to local needs and tech specialisms, developed in partnership with local bodies.

Furthermore, the organisations should ensure founders and firms can access digital entrepreneurship and investment readiness training with tailored advice to help develop their skills to start and grow a tech business.

The winner will need to clearly signpost startups and scaleups to the digital skills initiatives in private and the public sector (DCMS’ local digital skills partnerships) and share information on the types of roles available in tech companies, the skills required to access these roles, and direction to low/no cost skills provisions to acquire those skills.

In addition, it should promote and raise awareness of the strength and competitiveness of the UK tech sector with the aim of boosting investor confidence and inspiring the next generation of tech workers and entrepreneurs.

Digital Minister Chris Philp said: “Startups and scaleups are hugely important to our thriving tech sector. This funding is dedicated to growing these innovative businesses wherever they are in the country, providing the support and skills they need to succeed and create good jobs and generate wealth.

“The successful applicant will play a vital role in making the UK the best place in the world to start and scale a tech business.”

With the competition running this summer by the DCMS and the successful organisation will receive the funding from 1st April 2023.

The government will consult the market to help refine the grant specification before applications open later in the year.

The funding for this grant has previously been awarded to Tech Nation Group Limited. DCMS will continue to provide direct grant funding to Tech Nation until March 2023.

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