The number of UK technology companies hit a five-year high at the beginning of this year, despite ongoing economic uncertainty.

According to Companies House data analysed by accountancy firm RSM, there were 13,802 tech incorporations in the first quarter of 2024, an increase of 11 per cent compared with the same period of last year.

There were around 51,017 startups launched in 2023, which was a “record breaking” year.

London accounted for the highest number of tech firms at 7,253 in the first quarter of this year, up 16 per cent from 6,278 in the first quarter of 2023.

Wales saw the biggest drop in the number of start-ups, falling 28 per cent from 323 to 232.

Ben Bilsland, partner and head of technology industry at RSM UK, said that tech entrepreneurs need to engage with other businesses to collaborate, innovate and grow together.

“High rates of borrowing and uncertainty around inflation can have a detrimental impact on the risk appetite and patience of investors,” he added. “As interest rates stabilise, inflation slows, and business confidence improves, this bodes well for further growth in the sector.

“The development of innovative technologies requires a significant amount of investment and time, so an increase in both of these factors to enable the creation of new products will be hugely welcomed by UK tech companies looking to grow.”

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