Valuation or value?
The UK tech industry has a valuation obsession. But is this the foundation for economic recovery or the latest example of the emperor's new clothes?
This summer the UK became the first European nation to reach a milestone of 100 tech unicorns – the term given for privately held startups valued at over $1 billion. According to Tech Nation, the fintech firm Tractable, which builds digital tools, was the 100th startup to reach a $1 billion valuation.
Venture capital investments in UK startups also tripled at $18 billion during the first half of 2021 – quite a leap from 2017, when there were just 44 tech unicorns in Britain: a 127% increase over four years. Since the pandemic began, 30 more UK unicorns have been added, while the fintech sector accounts for the lion’s share of startups generally, at 34%.