The tech sector is currently thriving, with strong growth throughout 2021 following a period of significant economic turbulence largely caused by the COVID-19 pandemic.
In 2021 the UK economy saw impressive growth, increasing by 7.5% – representing its largest gain since the Second World War. The attached infographic examines the impact of the COVID-19 pandemic on economic growth globally, as well as looking at post-COVID recovery.
Throughout 2021 the UK tech sector recorded its best ever year, with a record number of futurecorns created, more unicorns formed and an overall increase in venture capital investment. The embedded PDF examines some of the pros and cons of gaining the backing of a venture capitalist from an entrepreneur’s perspective.
The Pros and Cons of Venture Capital Funding
In the UK during 2021, start-ups and scale-ups attracted an impressive £29.4 billion in investment, representing a 2.3-fold increase on the previous year’s figures. The UK tech sector scooped approximately one third of the total $89.5 billion in investment that flowed through the European tech ecosystem that year.
Tech is critical to growth, productivity and job creation in most countries today, with tech vacancies accounting for somewhere in the region of 1 in 8 available jobs in the UK. Although the tech sector’s meteoric rise offers significant socio-economic opportunities, it is vital that this growth is achieved in a safe and responsible manner.
In some circles, the pervasive nature of tech is an increasing cause for alarm. Many people have concerns regarding the lack of transparency surrounding the storage and sharing of personal information.
The Cambridge Analytica scandal of 2018 brought the matter to the fore, when the personal information of millions of Facebook users was collected by the company without their consent. That data was subsequently used in 2016 to assist in both the Brexit referendum and the US presidential campaigns. Some experts warn that voice-activated devices may be listening in on everyday conversations, with the increased integration of artificial intelligence further fuelling data security concerns.
Policymakers are calling for greater regulation in order to solve this problem, with the World Trade Organisation calling for efforts to promote markets that are fair, efficient, clean and orderly.
Roman Semiokhin has a wealth of experience in the tech sector, having launched several tech-focused businesses. As Mr Semiokhin will appreciate, it is crucial to avoid overregulating the tech industry to the point that it stifles entrepreneurship, business growth and innovation. The embedded video provides information about some of the most popular tech trends of 2022.