Tech Nation

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Tech Nation is a prominent UK-based organization founded in 2014 that works to promote the growth and development of the technology sector.
What are the main aims and objectives?

TechNation's primary aims and objectives revolve around fostering growth and innovation in the UK's technology sector. The organization strives to support and empower ambitious tech entrepreneurs and their companies throughout various stages of development. TechNation focuses on providing valuable resources, mentorship, and networking opportunities to help startups scale and succeed. Its objectives include facilitating investment in tech companies, promoting the UK as a global tech hub, addressing skills gaps in the industry, and advocating for policies that support the tech ecosystem. Additionally, TechNation aims to strengthen regional tech clusters across the UK, ensuring that innovation and economic benefits are distributed beyond London. The relaunched Tech Nation has pledged to help startups secure a cumulative £10 billion in funding over the next five years.

How does the program work?

TechNation operates as a comprehensive growth platform for the UK tech industry, focusing on empowering ambitious tech entrepreneurs and their companies through various initiatives and support mechanisms. At its core, TechNation offers a range of tailored programs designed to cater to different stages of a company's growth journey. These include Climate for climate tech founders, Libra for underrepresented tech founders, Future Fifty for late-stage ventures preparing for IPO, Upscale for post-Series A scaleups, Rising Stars for early-stage startups, and Creo for disabled founders and entrepreneurs innovating around disability.

These programs are enriched with expert-led workshops covering crucial topics such as scaling operations, building larger teams, expanding into new markets, and managing increased financial complexity. TechNation also places a strong emphasis on networking and peer support, facilitating valuable connections between entrepreneurs, industry leaders, and investors. This network provides opportunities for mentorship and knowledge sharing, which are vital for the growth and success of tech companies.

To attract international talent and enhance the UK's tech ecosystem, TechNation operates a Global Talent Visa program. This initiative fast-tracks the acquisition of exceptional individuals in the digital technology sector, ensuring that the UK remains competitive on a global scale. Additionally, TechNation produces annual reports and insights on the UK tech landscape, covering topics such as investment trends, startup growth, and emerging technologies like AI, which serve as valuable resources for the industry.

While many tech companies are based in London, TechNation actively supports tech clusters across the UK, including cities like Sheffield, Manchester, and Edinburgh. This regional focus helps to distribute the benefits of tech innovation and economic growth throughout the country. TechNation also collaborates with key partners, such as HSBC Innovation Banking, to provide additional resources and support to the tech ecosystem.

Investment facilitation is another crucial aspect of TechNation's work. The organization helps connect startups with potential investors and has contributed significantly to investment in the UK tech sector. In fact, alumni companies from TechNation programs have raised 22% of the $157 billion invested in UK tech over the past decade. Furthermore, TechNation engages in policy advocacy, working on developing strategies and recommendations to enhance the UK tech sector's competitiveness and innovation, such as their '10-Step Action Plan for UK Tech'.

What is the overall cost?

Tech Nation previously received substantial government funding, with approximately 75% of its revenue coming from government grants. The organization was awarded a £17.5 million grant from the Department for Science, Innovation and Technology (DSIT) for the financial years 2020/21, 2021/22, and 2022/23. However, In January 2023, Tech Nation lost its bid for a £12 million government grant to Barclays Eagle Labs.

How was it implemented?

The organization's roots trace back to 2011 when it was launched in Shoreditch, East London, by then Prime Minister David Cameron. Initially known as Tech City UK, its primary focus was to support the East London tech cluster, nicknamed Silicon Roundabout. 

As the tech landscape in the UK grew and diversified, so did the organization's scope. In recognition of the burgeoning tech scene in the north of England, Tech North was established to run programs across that region. This expansion reflected a growing awareness of the need for nationwide support for tech entrepreneurs and startups.

A significant milestone in TechNation's development came in November 2018. Prime Minister Theresa May and Chancellor Philip Hammond announced the launch of Tech Nation, which consolidated the efforts of Tech City UK and Tech North. This move aimed to amplify the organization's impact and extend its network of growth programs, events, skills, and data resources to all corners and clusters of the UK.

The UK government demonstrated its commitment to TechNation's mission in 2017 by investing an additional £21 million into the organization. This investment was coupled with an increase in the number of visas available for tech talent, underlining the government's recognition of TechNation's role in fostering tech growth and attracting global talent.

In January 2023, a significant shift occurred when the Department for Digital, Culture, Media and Sport awarded its £12.09 million Digital Growth Grant to Barclays Bank's Eagle Labs incubator instead of TechNation. This change in funding, which had previously accounted for about 62% of TechNation's budget, led to the organization becoming unviable as a standalone entity.

The Founders Forum Group (FF Group) acquired TechNation in April 2023. This acquisition aimed to preserve and build upon TechNation's legacy. The FF Group committed to relaunching several of TechNation's programs and reports on the UK tech sector, integrating them into their existing portfolio of events and services for entrepreneurs.

What impact has been measured?
  • Over the past decade, Tech Nation has engaged with over 5,000 businesses and propelled 1,250 of them through 48 growth programs
  • Companies supported by Tech Nation have raised an impressive £28.1bn in funding
  • It is estimated Tech Nation has contributed £701 million ($885 million) in gross value added to the UK economy since 2014
What lessons can be learned?

Several valuable lessons can be learned from TechNation's experience in fostering the UK's tech ecosystem:

  1. Nationwide Focus: TechNation demonstrated the importance of supporting tech companies beyond major hubs. By dividing the UK into 11 regions and having representatives in each, they ensured that nearly 60% of the companies they helped were outside London. This approach highlights the significance of nurturing talent and innovation across an entire country.
  2. Ecosystem Amplification: TechNation's strategy focused on amplifying existing startup communities rather than creating new ones from scratch. This teaches us that successful ecosystem building involves identifying and supporting organic growth rather than artificially manufacturing clusters.
  3. Targeting the Right Stage: The organization found that focusing on Series A companies was particularly effective. This stage represents a critical point where companies have validated their ideas and are poised for significant growth, making it an optimal time for intervention and support.
  4. Government Collaboration: TechNation's experience underscores the value of government backing in ecosystem development. It enhances credibility and fairness in program delivery. However, it also highlights the challenges of working with governments, including potential instability due to political changes.
  5. Ecosystem Maturity Doesn't Come Naturally: TechNation's journey revealed that ecosystem development isn't a linear process that happens automatically with time. Some long-established ecosystems in the UK never scaled, often due to a lack of cohesive vision or challenging economic conditions.
Notes + Additional Context

TechCity (2010 - 2017):

Previously known as TechCity, it employed a holistic approach, namely: advocacy, skills training, scaling support, international promotion, and connecting cities and regions across the country – all underpinned by evidence-based policy research and evaluation. Specific programmes included:

  • The Digital Business Academy, which has trained over 20,000 people in setting up and running a digital business;
  • The Future Fifty and Upscale programmes, which help 75 fast-growing startup companies to scale rapidly; HQ-UK, which promotes the UK as an international tech hub 
  • The Tech Nation Visa Scheme, which approves people applying for the Tier 1 Exceptional Talent Visa scheme;
  • The TCUK Cluster Alliance and Tech North, which shares best practices with other clusters; and finally,
  • The Tech Nation research programme, which maps the nature and scale of the UK’s digital economy to provide policymakers an overview of the health of the sector.

CURATED BY

Chris Haley

Head of Research
United Kingdom