The UK tech industry has hit a valuation of $1 trillion, becoming only the third in the world to ever reach this landmark.

The latest figures were calculated by Dealroom and analysed for the UK’s Digital Economy Council, with Digital Minister Chris Philp announcing them.

Scotland boasts two of the UK’s top five cities when it comes to tech investment so far in 2022 – with companies from Edinburgh and Glasgow raising a combined £115 million in venture capital since the turn of the year.

In 2021, Scottish companies raised a collective £228 million across 50 venture rounds.

Some of the notable names this year include Glasgow-headquartered global RegTech provider Encompass Corporation raised £25m in March.

Another driver of Scotland’s success is the country also has the highest regional salary outside of London and the South-East at £49,288. Edinburgh offers the highest average advertised salary at £58,405.

With Edinburgh currently home to two unicorns, Skyscanner and FanDuel, space launch vehicles startup Skyrora is predicted to reach a $1b valuation in the next few years.

Wayne Johnson, CEO and co-founder of Encompass Corporation, said: “The Scottish tech industry has been punching above its weight on a regional level for some time, and it has been great to see, and be part of, its growth.

“We’re delighted to be at the heart of what is a thriving community and are grateful to have received wonderful support in Scotland, which has been vital to the continuing success of our business.

“One of the reasons we chose to have a base in Scotland was because of the vibrant and innovative tech ecosystem we found there, and these latest figures just go to show what a good decision that was.”

Recommended

• Is your business ready to deal with the impact of a cyber-incident?
• Scottish e-Bike firm FreeFlow Technologies gets £1.65m funding
• UK could announce cryptocurrency regulations in coming weeks

For the UK, its tech industry is now worth more than double that of Germany’s and almost five times larger than France and Sweden.

In 2018, the UK tech ecosystem was valued at $446 billion and was steadily growing until 2020 when it surged 42% to $942bn because of increased investment activity into digital tools during the start of the Covid-19 pandemic and an active stock market.

The UK is now home to 13 decacorns, of which 10 have gone on to IPO, and are the most highly valued tech companies in the country. This is double that of Germany (six) and three times’ Sweden (four).

This coveted club is set to grow over the next few years with 14 UK companies with valuations of between $5bn and $10bn expected to become the next decacorns.

Digital Minister Chris Philp said: “Our tech industry has gone from strength to strength, overtaking the rest of Europe and entering the history books as the third country ever to reach this milestone.

“We’re working hard to make the UK the best place in the world to found, grow or float tech businesses – whether they’re early-stage startups or global innovators – ensuring they have the best talent, investment and regulation to thrive.”

Get the latest news from DIGIT direct to your inbox

Our newsletter covers the latest technology and IT news from Scotland and beyond, as well as in-depth features and exclusive interviews with leading figures and rising stars.

To subscribe, click here.