Recently techUK and TheCityUK co-hosted a summit on a crucial issue – how UK-based tech firms can expand their access to capital markets.

Economic Secretary to the Treasury Lucy Rigby emphasised the importance of tech firms choosing not just to start in the UK, but also to scale and stay in this country.

The UK has a strong track record of founding industry-leading, world-beating businesses, from high-tech companies such as Arm, Darktrace and DeepMind, to B2B giants like Sage and consumer platforms such as Deliveroo.

But this summit emphasised that we still have further to go to “secure the UK’s first trillion-dollar technology business” by 2035, the ambitious objective set out in the Industrial Strategy.

Scaling a company to a trillion-dollar valuation will require an influx of investment into the UK that is almost unprecedented, and not just into a single business, but into an entire field of startups and scaleups, ‘thoroughbreds’ and unicorns, to first create more companies with valuations in the tens and hundreds of billions.

The UK’s first trillion-dollar company is unlikely to be a sole standout – it is much more likely that it emerges from a crowded field of firms with multi-billion-dollar potential.

It is therefore vital that UK tech firms have the access they need to capital markets, from early-stage venture capital to long-term patient capital. Fortunately, there is no shortage of finance available, at least in theory.

A report from UK Private Capital estimates that up to £190bn of private capital is set to be unlocked from UK-based funds by 2030, half of which could be invested back into the UK.

For the tech sector, this means an unparalleled opportunity to grow if used properly, with access to a full range of investment options including VCs, institutional investors, and also foreign direct investment.

Scaling tech firms, investors and policymakers should increasingly think not just in short-term funding cycles, but over 10-, 15-, and even 20-year horizons, outlining clear paths to profitability over the long term.

Cooperation and networking opportunities between pension funds, the tech sector, and other VC and equity funds will become increasingly important, and firms should be reaching out to the City now more than ever to meet, collaborate, and connect.

Although access to finance is essential to scaling a trillion-dollar UK company, it is not sufficient. Two other critical factors are access to world-leading talent and a clear route to market.

For tech firms, access to talent and skills are crucial to ensuring that the most innovative companies have the people they need to invent the future.

Domestically, we must do more to upskill our current workforce in AI and other digital skills – something techUK is championing by proudly sitting on the government’s AI Skills Partnership alongside many of our member companies, with the aim of upskilling 10 million workers in AI by 2030.

In addition, the UK must become a magnet for international talent, which means developing a visa system that enables us to hire the best and brightest from across the globe, for example by expanding the Global Talent visa.

Last but not least, all businesses need customers. Scaling firms need access to large markets both in the UK and abroad. At home, many tech firms find the regulatory burden to be a key barrier, with outdated regulations preventing them from bringing innovative products to market quickly.

The Regulatory Innovation Office should continue to support firms to identify and overcome these barriers.

Furthermore, the government should leverage its procurement power to buy cutting-edge technology, ensuring that the public sector takes advantage of the best of what we invent and commercialise.

Finally, the government can further expand potential markets by securing free-trade opportunities abroad and supporting exporters.

The Industrial Strategy’s trillion-dollar objective is a challenge for the country – but also a huge opportunity. If we truly mobilise the government, technology and financial services sectors behind this mission and unlock access to the necessary capital, talent and markets, then there is no limit to what the UK can achieve.

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