Tech Start-Ups Growing At Phenomenal Rate
Posted on 19th November 2013
New technology firms in the UK are growing at a phenomenal rate, with recent research showing that the average five-year growth rate is 1,382 per cent for the top 50 firms.
A London-based real-time advertising exchange called Infectious Media was named the UK’s fastest growing tech company, with revenue growth of nearly 10,000 per cent since 2008.
Speaking of his firm’s phenomenal growth, co-founder and chief executive Martin Kelly said that with the financial crisis in full swing, he and his team had been forced to bootstrap the business, which was hard at the time, but in retrospect was a good thing. He added that they had had no choice but to be profitable from day one, which also made them very disciplined with costs.
The 50 companies together generate over £672m in annual revenues and share an average five-year growth rate of 1,382 per cent. The 50 named this year are the most regionally diverse group ever, although London still led the way in the rankings, with 40 per cent of the businesses based in the capital.
Financing for the tech firms’ rapid growth came largely from banks, with a quarter of the companies taking on bank debt, while crowdfunding came in as the least popular source of finance, with only a small number of the Chief Executives using it within the past five years or intending to use it in the future.
Interestingly, however, given the preponderance of fastest growing firms being based in London, the UK hot spot for new technology companies is not in the capital but in Wokingham in Surrey, according to a recent piece of research.