Digital Scotland 2018 Keynote Tech Nation 2018 Report 21st June 2018 Gerard Grech Chief Executive Tech Nation

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1 Digital Scotland 2018 Keynote Tech Nation 2018 Report 21st June 2018 Gerard Grech Chief Executive

2 Who is Tech Nation? We empower ambitious tech entrepreneurs to grow faster through growth programmes, digital entrepreneurship skills, a visa scheme for digital expertise, and by championing the UK s tech sector through data, stories and media campaigns So far, we have worked with over 350 companies, who have collectively raise $7Bn in 50 months, at all growth stages

3 Innovation globally is evolving Startups & entrepreneurial talent is becoming the heart of innovation

4 Key Drivers of a Tech Ecosystem Many other smaller factors are also important, but these provide the framework

5 Startup needs evolve as they grow

6 Each year, we publish the most comprehensive research on UK Tech, using the latest data from several partners & survey responses. All the data is open at data.world. Plus we published a new report with Dealroom last week. Find out more at: TechNation.io

7 The UK s digital tech sector grew 2.6 times faster than the rest of the economy in 2017 Digital tech turnover increased from 170 billion in 2016 to 184 billion in 2017 Every 50 minutes a digital tech business is created in the UK Digital tech jobs increased from 1.64 million in 2016 to 1.87 million in 2017.

8 In 2017, UK venture capital investment exceeded Germany, France and Sweden combined (and even the Rest of Europe)

9 While London is the financial epicenter, businesses are scaling across the United Kingdom Venture capital investment in $B ( April) Ellen Brewdog $160M Amounts raised per company Edinburgh Skyscanner $175M ($1.7B+ exit to Booking.com) Fanduel $415M Rudheath / Manchester The Hut Group $300M Bristol Icera $200M Graphcore $110M Durham Atom Bank $400M Oxton Biovex $140M Cambridge Darktrace $180M Kymab $125M PatientsLikeMe $110M Cambridge Medical Robotics $50M FeatureSpace Oxford $40M Oxford Nanopore $450M Gigaclear $175M Immunocore $360M Reaction Engines $145M Adaptimmune $105M

10 Globally, as the race for tech talent continues, London ranks 3rd in latest tech startup ecosystem rankings Performance of the top 12 global tech startup ecosystems Source: Startup Genome, 2017

11 UK accounts for 13 of Europe s 34 tech unicorns, or 38% UK: 13 unicorns Israel: 8 unicorns (1)

12 with a combined value of about $23 billion, which is about 37% of total European value of $62 billion Total value of European unicorns per country 13 unicorns Source: Dealroom.co 12

13 Since 2010, the United Kingdom has delivered as many unicorns as Israel, Germany and Sweden combined

14 The United Kingdom is Europe s second biggest source of capital, after the United States and just before Asia Venture capital invested in Europe by investor HQ location (2017) UK 22% USA 26% EU 34% Asia 13% RoW 5% Source: Dealroom.co

15 Many UK tech unicorns are driven through algorithmic control, attracting specialist high paying jobs Unicorn Benevolent AI Telegram Employment >500 > Unicorn Employment

16 Jobs in digital tech are on the rise THE MORE DIGITALLY SKILLED A UK JOB IS, THE HIGHER ITS AVERAGE ANNUAL SALARY From 2014 to 2017 digital tech sector employment rose 13.2%. Its workers are more productive, on average, by 10,000 per worker. Jobs requiring digital tech skills command higher salaries, at 42,578 compared to 32,477 for those that do not. Average annual salary of jobs Source: Adzuna, 2018

17 Top 400 UK meetups* highlight emerging trends AI and Blockchain are quickly taking centre stage Software Dev & Blockchain Top 400 tech meetup groups by *membership in the UK 2018 Open Source & AI Source: Tech Nation, 2018; Meetup.com, 2018

18 Programming languages associated with web development are prevalent The top three are JavaScript, Python and PHP Top programming languages used on Github, by number of users Source: Tech Nation, 2018; Github, 2018

19 UK tech communities value quality of life and sense of place 1. Appealing area 2. A helpful tech community Challenges of local tech ecosystems Source: Tech Nation and Streetbees, Proximity to a university

20 Diversity remains a key challenge for digital tech WOMEN IN TECH ARE OUTNUMBERED 4:1 Only 19% of the digital tech workforce is female. Despite the stereotype that digital tech jobs are for millennials, 72% of workers are aged over 35. Gender diversity of people working in digital tech jobs, 2017 Source: Tech Nation, 2018; ONS, Annual Population Survey, Wave

21 Scottish tech sector growing quickly, on the back of world leading talent The tech sector in Scotland is worth 3.9bn to the Scottish economy Digital tech turnover per employee hitting 80,000 Edinburgh, Dundee and Glasgow all see sharp increase in business births

22 Glasgow is a Top 10 meetup hub, with 12K members 1.05Bn Digital Turnover 33,653 Digital Tech jobs 10,063 Jobs in digital Tech 104k Digital tech turnover per employee Compared to 99k UK average Challenges for tech in Glasgow 1. Access to funding 2. Retaining talent 3. Access to workspace Glasgow is one of the UK s top locations for informal tech meetups, with over 12,000 members. This collaboration is important for fostering innovation.

23 Thank you. Explore more