The number of new tech companies being set up in the East of England rose by 5 per cent in 2018 according to new analysis by RSM.
East of England tech start-ups rise by 5 per cent in 2018
In total, there were 748 new software development and programming businesses incorporated in the East of England in 2018, up from 715 in 2017.
Nationally, there were 11,864 new tech firms established during the year according to data held by Companies House, a 14 per cent increase on the 10,394 companies set up in the previous year.
The data also revealed that tech company incorporations grew across every region in the UK with the exception of Scotland where the number of tech start-ups dipped slightly by 4 per cent and in the North East where the numbers remained flat.
Commenting on the figures, Laragh Jeanroy, RSM's managing partner for Cambridge and Bury St Edmunds said: ‘Given the current economic uncertainty, it's fantastic to see that tech start-ups across our region have continued their upward trajectory.
'Particular hotspots include Cambridgeshire and Essex which are proving to be a magnet for the next generation of tech entrepreneurs. We are also seeing good interest from venture capital, private equity and traditional funders who are still lining up to commit funds to the right projects.
'Tax incentives such as the Enterprise Investment Scheme, R&D tax credits, video games tax relief and the Patent Box regime are all playing their part in helping to fuel this growth.
'The challenge for start-ups, particularly in the tech space is to develop at speed and to scale-up fast. There can be a high rate of failures as projects can often get overtaken by new technological innovations or better resourced competitors. But get the formula right, find the right backers and success can be very lucrative.'
To support the growth ambitions of successful UK tech-based scale-ups, RSM has recently announced its partnership with Upscale 4.0 – a six-month accelerator programme delivered by Tech Nation. RSM will work with Tech Nation to offer its latest cohort of 30 companies access to its expertise and experience in a bid to assist the next phase of their growth ambitions.
RSM is a leading provider of audit, tax and consulting services to middle market leaders, globally.