London technology firms turned over a combined £56bn in 2016 and a new tech firm was formed every hour.
The spirit of tech-enabled innovation has been gaining momentum since the downturn. Not just at grass roots and established pure technology companies, but also in technology-enabled and traditionally non-technology industry businesses.
Consequently, most of our deals now have a material technology component, be it the core product, a significant enabler of service delivery and/or a key component of an advanced piece of consumer or business/industrial hardware.
In addition to core functionality, IP ownership, scalability, a development roadmap and infrastructure security are usually at the top of an investor/acquirer's diligence hit list. And longer term, technical human capital availability post-Brexit looms in the distance.
Tech-enabled businesses should ensure all these points are addressed in an optimal manner, documented clearly and revisited frequently to ensure effective commercial delivery and profitability – and to secure confidence (and therefore enhanced value) from future investors and acquirers alike.
Investment and turnover in London’s tech and digital sector continued to boom according to new figures released by Tech City UK, which show a new tech company was formed every hour in 2016. In its Tech Nation 2017 report, which is its latest survey of the UK’s tech sector, the organisation has found that both job creation and wage growth in the sector is outstripping the wider economy as it cements its position as one of the country’s key industries. London in particular has continued to assert its preeminence, with London tech firms contributing a combined £56bn in turnover last year, marking a 106% rise in the last five years.