Welsh Tech Firms are Well Positioned for Sustained Growth

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Tech Nation, the scaleup network for entrepreneurs, launches its inaugural Scale Ratio, which compares the number of seed stage, early growth and late growth companies in the UK’s tech ecosystems.

Tech Nation reveals that a 50:30:20 ratio of seed (50%), early growth (30%), late growth (20%) companies in a UK regional tech hub is indicative of a mature, balanced ecosystem, well placed to benefit from the accelerated growth of late stage companies while creating the next wave of tech scaleups.

Tech Nation’s newly launched ‘Scale Ratio’ suggests the 50:30:20 ratio results in the highest performing hubs – areas with the largest number of scaleups attracting the most significant VC investment. London, Manchester and Cambridge generally exhibit the 50:30:20 ratio and attracted the most investment in the UK in 2020, with 70% of investments made into late stage companies.

As a whole, Wales closely follows the 50:30:20 ratio and Swansea (49:31:20) almost exactly exhibits the ideal ratio. Cardiff on the other hand, with a Scale Ratio of 55:25:22, has a high proportion of seed stage companies, which indicates it has high growth potential.

Dr. George Windsor, Head of Insights, Tech Nation, comments:

“Crucially, the Scale Ratio tells us about the growth potential of the UK’s tech hubs and provides the levelling up agenda with new evidence to boost regional ecosystem development. It highlights exactly where scaleups are not receiving the support they need to grow from seed stage upwards to ensure these gaps are plugged. Despite the challenges of the past 12 months, the growth and potential of homegrown tech pioneers gives us something to celebrate.

“Tech scaleups hold the key to the UK’s competitiveness in the next decade through job creation and investment. Scaleups are already driving investment into UK tech, representing 81% of the UK total and creating employment, with approximately 150,000 jobs in 2019. From established firms to startups, it’s important to remember that companies at all stages make up the local and regional economies that give UK tech its global reputation.”

Tech Nation identifies One Team Logic as one of the UK's most promising tech companies 

This report comes as Tech Nation reveals the latest cohort of its Upscale programme, 33 of the fastest-growing and most promising home-grown tech businesses in the UK. The Upscale programme supports the growth of leading scaleups, exploring the fundamental growth challenges between peers and established tech founders.

The programme has been able to increase participation from across the UK, with 48% of finalists coming from outside London. One of the 33 companies joining the programme is One Team Logic, based in Cardiff:

One Team Logic combines the best technologies with world-class safeguarding expertise. The core product, MyConcern, is used by organisations such as schools, training organisations, national sporting bodies and religious organisations globally to record, monitor and manage safeguard concerns about children.

Martin Baker, Co-founder & CEO, One Team Logic, comments:

“As a company with a clear mission to protect children and vulnerable adults we constantly strive to extend the reach of our products and services to the people and the places where they are needed most and we believe that Upscale can help us to do that far more quickly and much more effectively. We believe the programme provides an exceptional development opportunity for the talented leaders in our company who daily commit themselves wholeheartedly to our mission, it is a unique opportunity that will enable us all to learn, develop and innovate together. One of the great joys of being a founder is creating jobs and seeing people grow and achieve, and there has never been a more important time for scaleups to create both opportunities and hope in every part of our country and our economy.”

Now in its sixth year, the Upscale programme has continued to evolve, completely online. The programme this year is helping founders and scaling teams tackle the particular challenges which have arisen as a result of the Covid-19 pandemic, such as: scaling culture and building a team remotely, and raising funds in a lockdown, pivoting strategy.

Liam Ward, Upscale Programme Lead, Tech Nation comments:

“We’re incredibly excited to launch Upscale 6.0, our most regionally diverse cohort ever, alongside the Scale Ratio Report, and to continue to champion and support the UK’s most exciting fast-growth companies.  Despite the events of the last 12 months, we’re still seeing some exceptional companies scaling at Series A stage, with healthtech and the future of work being represented particularly strongly. We’re excited to adapt Upscale to support the new challenges that founders are facing around remote work, fundraising and culture; and to work with such an exciting group of leaders.”