According to a new report from startup data and intelligence provider Dealroom, Glasgow’s tech ecosystem went from strength to strength in 2023, receiving record levels of investment and growing at a rate which exceeded many other UK and European ecosystems.

The new Glasgow City Region Tech Ecosystem Report 2024—which includes a foreword from the Scottish government’s chief entrepreneurial advisor, Mark Logan—analysed an array of data points concerning investment, ecosystem growth, and enterprise value.

Among one of the many insights from the report, published during the inaugural Glasgow Tech Week, is that the Scottish city’s tech ecosystem received record levels of investment last year: £170 million in VC money was plugged into Glaswegian tech startups in 2023, compared to 2022’s number of £88m.

Funding rounds that helped to dramatically bump up the level of investment came from companies like Chemify, the University of Glasgow spinout aiming to digitise chemistry, landing £36m in its Series A. Another standout was Enough, the foodtech firm, which raised £34m in its Series C funding round.

This upward trend looks like it may very well continue, too, as the report highlighted that Glasgow startups secured £47 million in VC investment in Q1 2024 alone.

Breaking down which Glaswegian tech sectors received the most funding, healthtech startups received a significant 51% of the total investment, at £86 million. This was then followed by transportation-focused tech (£41m), enterprise software (£39m), foodtech (£38m), and energy-oriented technology (£31m) as the top five sectors.

With all this in mind, it’s perhaps not surprising to hear that Dealroom’s report found Glasgow to be one of the fastest-growing ecosystems in the UK, being bested only by Sheffield, Liverpool, and Birmingham, and surpassing the likes of London, Oxford, and Cambridge—otherwise known as the “Golden Triangle.”

Furthermore, the Glaswegian ecosystem is growing at a quicker rate than many mature European ecosystems, not least cities such as Berlin, Tallinn, Brussels, London, and Amsterdam.

Speaking on what makes Glaswegian startups particularly attractive to investors, Andrew Noble, partner at Edinburgh-based VC firm Par Equity, said in the report: “As a VC, we’re drawn to the character traits of the entrepreneurial community in Glasgow, often demonstrated by their proactive, commercial mindset and a high degree of grit and determination to build big businesses.”

“Glasgow boasts access to affordable office space and the infrastructure needed to support fledgling companies and tech innovation, with renowned universities like Strathclyde and Glasgow providing a collaborative platform between academia and industry,” he added.

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The report also called attention to the fact that, as of Q1 2024, the combined enterprise value of Glasgow startups has surpassed £4.1 billion. In 2023, this number was £3.9b, and in 2022, £3.5b.

“Glasgow has learned how to harness its considerable talent, creativity and resources towards building a genuinely world-class start-up environment,” noted Logan in the report.

“The city has experienced astonishing growth of 526% in investment into its startups since 2019, making it one of Europe’s fastest growing ecosystems, with the enterprise value of Glasgow’s startups exceeding £4B for the first time. Onward!”