The numbers are in.
2025 was the biggest year ever for new tech companies in the UK. A record 56,615 tech businesses were incorporated last year, up 17% from 2024 and a staggering 47% increase from five years ago.
Despite all the economic uncertainty, founders are still betting on Britain.> "This isn't just a feel-good headline. It signals something important for anyone building a tech startup right now."
The Growth Is Real, And It's Nationwide
According to RSM UK's analysis, nearly every region in the UK saw record tech incorporations in 2025. Wales led the charge with a remarkable 79% year-on-year increase, followed by the West Midlands (27%) and both the East of England and North West (24% each).
Here's the full regional breakdown:
| Region | 2024 | 2025 | Year-on-Year Growth |
|---|---|---|---|
| Wales | 924 | 1,657 | 79% |
| West Midlands | 2,641 | 3,341 | 27% |
| East of England | 3,628 | 4,493 | 24% |
| North West | 3,528 | 4,385 | 24% |
| Yorkshire and The Humber | 1,746 | 2,151 | 23% |
| South West | 2,148 | 2,599 | 21% |
| East Midlands | 1,618 | 1,875 | 16% |
| South East | 4,981 | 5,710 | 15% |
| Scotland | 1,633 | 1,885 | 15% |
| Northern Ireland | 458 | 524 | 14% |
| London | 24,455 | 27,164 | 11% |
| North East | 758 | 831 | 10% |
| UK Total | 48,518 | 56,615 | 17% |
London remains the dominant hub with 27,164 new tech incorporations. But what's striking is how the growth is spreading across the country. Regions like Wales and the West Midlands are growing at more than double the rate of London.
This regional spread matters. If you're building a startup outside London, you're no longer swimming against the tide. The ecosystem is expanding to meet you.
Why Tech Is Still the Play
Georgie Bole, director at RSM UK, points to the sector's cross-industry appeal as a key driver. Tech businesses don't just serve tech customers. They power innovation across healthcare, finance, manufacturing, and professional services.
The numbers back this up. The UK's AI sector alone generated £23.9 billion in revenues last year, with employment jumping by a third to more than 86,000 people. That's according to a government report showing the sector is growing 150 times faster than the broader economy.
There's also significant government support flowing into the ecosystem. The AI Opportunities Action Plan has unlocked billions in investment, with £24.25 billion in private capital committed in a single month alone. Companies like Microsoft, Nvidia, and Google have pledged massive sums to UK AI infrastructure.
For early-stage founders, this creates opportunities. When big firms are betting on AI as employees, there's demand for the tools and platforms that make it happen.
The Confidence Is Holding
Here's what's perhaps most encouraging. RSM's Technology Industry Outlook found that 76% of tech business leaders feel confident their company will grow under the current government. That's remarkable given the economic headwinds of the past year.
Almost 90% of AI business representatives expect revenues to grow in the coming year, with 58% expecting growth of 50% or more.
This isn't blind optimism. The UK has positioned itself as a serious player in global tech. It secured second place globally in tech funding for 2025, behind only the US. The creation of AI Growth Zones across the country, from South Wales to the North East, signals long-term infrastructure commitment, not just short-term hype.
The Skills Challenge Remains
Not everything is rosy. RSM's report flags a significant concern: the UK is struggling to attract and retain tech talent.
The South East was the only region that didn't hit record incorporations in 2025, likely due to skills shortages holding back growth. Across the sector, 71% of AI businesses say they need more skilled workers, yet access to talent remains a critical bottleneck.
If you're looking to hire for your startup, this is a real consideration. Competition for technical talent is fierce, and the barriers to overseas recruitment haven't made it easier.
What This Means for You
If you've been sitting on a tech startup idea, the conditions for launching in the UK have never looked better. Record investment. Government backing. A growing ecosystem beyond London. Strong founder confidence.
Yes, there are challenges: talent shortages, regulatory uncertainty, and the ever-present funding gap for later-stage companies. But the trajectory is clear.
The UK isn't just surviving as a tech hub. It's thriving.
Whether you're creating your first pitch deck or exploring AI startup accelerators, you're entering a market that's actively expanding.
56,615 founders took the leap last year.
Maybe 2026 is your year.
