Seedrs CEO Jeff Kelisky says it is time to “double down on the bustling UK tech sector.”
In a blog post, Kelisky noted that expectations are for VC funding in European startups to be over 50% less in 2023 than in 2021 due to the struggling economy.
At the same time, even as tech investment struggles, Kelisky says now is the moment to support innovators and investors and at Seedrs they are seeing “green shoots of renewed positivity for tech on our platform.”
Firstly, tapping into the artificial intelligence theme of last week, there have been several successful AI-focused campaigns raising on Seedrs this year. These include LogicDialog, a platform making it easy for businesses to build powerful generative conversational AI solutions who we helped raise £613k from 580 investors; and Verv Energy, whose Smart Isolator product that reduces the energy, carbon and running costs of air conditioning, drove 335 investors to invest £436k.”
Kelisky reported that ClimateTech grew even faster in 2023 than the year prior, with total investment up from £3.2 million in 2022 to £16.2 million in 2023.
Kelisky pointed to “pro-investment tax frameworks” that allow investors to claim tax relief on 50% of the value of very early-stage investments as boosting innovation and investment.
UK Prime Minsiter Rishi Sunak recently outlined why the UK is the best place to create a tech firm. Sunak stated that the UK is:
#1 – In the last decade, the UK has created 134 tech unicorns
#2 – We’re one of the most digitally literate societies in the world
#3 – The top 25 biopharmaceutical organisations operate in the UK
#4 – We have some of the best science universities anywhere in the world
#5 – UK start-ups received over $31 billion of Venture Capital funding in 2022 (in 2023 UK tech has raised more than double than firms in Germany and almost double that of France)
#6 – The UK has the lowest corporation tax in the G7
#7 – We have one of the most generous capital allowances regimes in the OECD.
#8 – We’re increasing R&D investment by £5 billion, reaching £20 billion a year by 2024/25
#9 – We have new and improved globally competitive visas
#10 – The UK is home to half of Europe’s Fintech unicorns (more than the next thirteen European countries combined)