{"id":666715,"date":"2025-05-03T04:11:04","date_gmt":"2025-05-03T01:11:04","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/scaling-uk-tech-is-a-geopolitical-imperative\/"},"modified":"2025-05-03T04:11:04","modified_gmt":"2025-05-03T01:11:04","slug":"scaling-uk-tech-is-a-geopolitical-imperative","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/scaling-uk-tech-is-a-geopolitical-imperative\/","title":{"rendered":"Scaling UK tech is a geopolitical imperative"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a23e7fa1604b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a23e7fa1604b\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/scaling-uk-tech-is-a-geopolitical-imperative\/#Recognising_the_barriers_to_scaleup_growth\" >Recognising the barriers to scaleup growth<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/scaling-uk-tech-is-a-geopolitical-imperative\/#Finance_fixing_the_late-stage_funding_gap_in_UK_tech\" >Finance: fixing the late-stage funding gap in UK tech<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/scaling-uk-tech-is-a-geopolitical-imperative\/#Talent_addressing_hiring_challenges_and_skills_gaps\" >Talent: addressing hiring challenges and skills gaps<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/scaling-uk-tech-is-a-geopolitical-imperative\/#Place_creating_scaleup_hubs_across_the_UK\" >Place: creating scaleup hubs across the UK<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/scaling-uk-tech-is-a-geopolitical-imperative\/#Creating_the_right_conditions_for_UK_tech\" >Creating the right conditions for UK tech<\/a><\/li><\/ul><\/nav><\/div>\n<div id=\"article-main-content\">\n<p><span style=\"font-weight: 400;\">Amid the economic malaise that followed the 2008 financial crisis in the UK \u2013 record unemployment, sluggish growth, tight fiscal consolidation \u2013 a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a>-changing policy drive was beginning to take shape.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This shift, driven by the Conservative-led coalition government at the time, was designed to transform the UK into \u201cIncubator Britain\u201d \u2013 attracting software and tech entrepreneurs with generous tax breaks, government-backed early-stage funding, and a thriving ecosystem, laying the foundations for the startup hub we recognise today.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But while these initiatives succeeded in spurring startup growth, they did little to help those businesses scale. Despite having near-zero costs of distribution, British software firms today take nearly twice as long to scale from \u00a310mn to \u00a3100mn in revenue as their US counterparts, held back by a set of persistent barriers that significantly stunt their growth potential.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Against today\u2019s backdrop of weak growth, isn\u2019t it time we <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lied the same strategic focus to supporting scaleups as we did to startups in the 2010s? With geopolitical tensions rising, building up our homegrown <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> sector represents good business sense and bolsters our future security.<\/span><\/p>\n<div class=\"inarticle-wrapper latest channel-cta hs-embed-tnw\">\n<div id=\"hs-embed-tnw\" class=\"channel-cta-wrapper\">\n<div class=\"channel-cta-img\"><img decoding=\"async\" class=\"js-lazy\" src=\"https:\/\/s3.eu-west-1.amazonaws.com\/tnw.events\/hardfork-2018\/uploads\/visuals\/tnw-newsletter.png\"\/><\/div>\n<p><img decoding=\"async\" src=\"https:\/\/s3.eu-west-1.amazonaws.com\/tnw.events\/hardfork-2018\/uploads\/visuals\/tnw-newsletter.png\"\/><\/p>\n<div class=\"channel-cta-input\">\n<p class=\"channel-cta-title\">The \ud83d\udc9c of EU tech<\/p>\n<p class=\"channel-cta-tagline\">The latest rumblings from the EU tech scene, a story from our wise ol&#8217; founder Boris, and some questionable AI art. It&#8217;s free, every week, in your inbox. Sign up now!<\/p>\n<\/div>\n<\/div>\n<\/div>\n<p><span style=\"font-weight: 400;\">The scaleup sector makes an outsized contribution to the economy, accounting for just 1% of UK SMEs, but generating 22% of SME turnover. Creating the right conditions for high-growth businesses to flourish is therefore crucial not only to the success of new businesses \u2014 it is also central to the government\u2019s defining mission: reigniting economic growth.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Recognising_the_barriers_to_scaleup_growth\"><\/span>Recognising the barriers to scaleup growth<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Without meaningful action to address these barriers, the UK risks losing our most promising tech firms to foreign markets, taking high-value jobs, innovation, and intellectual property with them \u2014 a trend that has cost the UK billions already. The country has a golden opportunity to break this cycle, particularly in AI, where we have the potential to create globally significant companies rather than see these grow elsewhere or get snapped up by US giants. The AI sector alone has grown substantially, with its <\/span><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.ons.gov.uk\/economy\/grossvalueaddedgva\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">Gross Value Added<\/span><\/a><span style=\"font-weight: 400;\"> increasing from \u00a31bn in 2022 to \u00a31.2bn in 2023, and estimates suggesting UK AI firms generated over \u00a314bn in revenues. Keeping these companies local could be transformational.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At a recent industry roundtable held by the think tank, The Future Governance Forum, the barriers facing scaleups took centre stage. Among the attendees were Labour MP Josh Simons, the BVCA \u2014 the trade body for the UK\u2019s private equity and venture capital industry \u2014 and my company, Boardwave \u2014 a community of more than 2,000 European software leaders and CEOs. The discussion echoed the findings of the Future Governance Forum\u2019s recent report, \u201cA Mountain to Scale,\u201d identifying three critical areas where policy must change to enable this essential growth. These were: finance, talent, and place.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Finance_fixing_the_late-stage_funding_gap_in_UK_tech\"><\/span>Finance: fixing the late-stage funding gap in UK tech<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">While there is plenty of capital available for <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">Series<\/a> A investments, scaleups often struggle to secure the later-stage funding they need to continue growing. This \u201cvalley of death\u201d in funding is a well-documented issue, with an estimated \u00a315bn shortfall in domestic scaleup investment annually.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The government cannot close this gap alone; unlocking larger pools of private capital is essential. Sweden\u2019s model of encouraging pension fund investment into growth-stage businesses offers one potential blueprint. The UK\u2019s own pension reform agenda represents a similar opportunity to mobilise greater private sector investment.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Talent_addressing_hiring_challenges_and_skills_gaps\"><\/span>Talent: addressing hiring challenges and skills gaps<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Labour market dynamics are also making it harder for scaleups to thrive.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The recent roundtable emphasised the challenges around hiring in the UK, given the impact that recent policy changes \u2014 such as the increase in employers\u2019 National Insurance contributions \u2014 have had on business confidence.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Alongside this is the availability of technology talent. The UK\u2019s visa system needs to better support the development of skills in high demand, particularly in AI, if the country is to remain globally competitive. The government should look at targeted visa pathways such as Estonia\u2019s e-Residency rules to attract the talent needed to drive the next generation of high-growth firms.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Place_creating_scaleup_hubs_across_the_UK\"><\/span>Place: creating scaleup hubs across the UK<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There is a significant opportunity to position the UK as the best base for scaling businesses looking to enter the European market, particularly for investors and firms from high-growth economies like Brazil. Many foreign investors see the UK as attractive for reasons such as our strategic location, the English language, our openness to foreign direct investment (FDI), good infrastructure, and a stable government.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, the current feeling \u2014 particularly in the software and technology sector \u2014 is that the UK is often a less attractive place to scale a business than other markets. Despite this reputation, technology is playing an increasingly critical role in driving growth, fostering innovation in key sectors such as defence, energy, and security, and strengthening the UK\u2019s geopolitical position.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The government\u2019s recent announcement of increased defence spending underscores the need for sustained investment in cutting-edge technology to maintain strategic advantages. To fully harness the potential of tech scaleups \u2014 not just as economic drivers but as pillars of national resilience \u2014 policies like the <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.seis.co.uk\/\" target=\"_blank\" rel=\"nofollow noopener\">Seed Enterprise Investment Scheme (SEIS)<\/a> and the <\/span><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.british-business-bank.co.uk\/business-guidance\/guidance-articles\/finance\/what-is-the-enterprise-investment-scheme-eis\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">Enterprise Investment Scheme (EIS)<\/span><\/a><span style=\"font-weight: 400;\"> should be expanded to support more mature, scaling companies in sectors aligned with these priorities. By doing so, the UK can solidify its leadership in the global tech landscape while reinforcing its economic and geopolitical standing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Regional growth is also key to tackling the broader trust problem in UK entrepreneurship. More people are employed by scaleups in the South East than in the rest of England combined. And with the majority of foreign funding for tech going to firms based in London and the South East, this reinforces the need to deploy more UK capital into tech, and take a place-based approach to scaleup policy.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Having stronger entrepreneurial communities is essential to propelling long-term growth. A more connected UK \u2014 and European \u2014 ecosystem, where founders have access to mentors, capital, AI expertise, and scaling best practices, will be critical in driving innovation and competitiveness. The UK already has a strong foundation of experienced leaders in tech and high-growth businesses, and their expertise should be harnessed and shared as part of the country\u2019s broader growth strategy. By enabling collaboration and knowledge exchange across regions, we can create a more resilient, well-networked entrepreneurial landscape that fuels scaleup success nationwide.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Creating_the_right_conditions_for_UK_tech\"><\/span>Creating the right conditions for UK tech<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">One of the roundtable\u2019s most striking conclusions came from Josh Simons MP: businesses and investors should seize the opportunity to act. While policy changes on investment, talent, and place can play a vital role in creating the right conditions, the private sector must also take the lead in addressing risk aversion and mobilising investment into the UK\u2019s most promising growth-stage firms.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Two years ago, while in opposition, then-shadow chancellor Rachel Reeves outlined her ambition to make Britain the \u201cbest place to grow a business,\u201d vowing to break down the \u201cstubborn obstacles\u201d holding scaleups back. Now, as the government\u2019s chancellor, she has a unique opportunity to realise that vision.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Fulfilling this ambition in power means recognising the crucial role scaleups play in the UK economy. Policy must tend the soil in which clusters of innovative firms can grow and sow the seeds that will transform \u201cIncubator Britain\u201d into \u201cScaleup Britain\u201d. The government\u2019s mission for growth depends on it.<\/span><\/p>\n<\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMN63nwsw68G3Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more like this article, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/category\/technology\/\" target=\"_blank\" >Technology category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thenextweb.com\/news\/opinion-scaling-uk-tech-is-geopolitical-imperative\" target=\"_blank\" >Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Amid the economic malaise that followed the 2008 financial crisis in the UK \u2013 record unemployment, sluggish growth, tight fiscal consolidation \u2013 a game-changing policy drive was beginning to take shape.\u00a0 This shift, driven by the Conservative-led coalition government at the time, was designed to transform the UK into \u201cIncubator Britain\u201d \u2013 attracting software and&#8230;<\/p>\n","protected":false},"author":1,"featured_media":666716,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/img-cdn.tnwcdn.com\/image\/tnw-blurple?filter_last=1&fit=1280%2C640&url=https%3A%2F%2Fcdn0.tnwcdn.com%2Fwp-content%2Fblogs.dir%2F1%2Ffiles%2F2025%2F04%2FUntitled-design-34.jpg&signature=7f9bb8fbcd70f66e7da41a342b6b9000","fifu_image_alt":"","footnotes":""},"categories":[18],"tags":[],"class_list":["post-666715","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/666715","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=666715"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/666715\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/666716"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=666715"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=666715"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=666715"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}