The number of new tech companies being set up in the East Midlands rose by 22% 2018 according to new analysis by RSM.
There were 422 new software development and programming businesses incorporated in the East Midlands in 2018, up from 345 in 2017.
Nationally, there were 11,864 new tech firms established during the year accordingto data held by Companies House, a 14% increase on the 10,394 companies set up in the previous year.
The data also revealed that tech company incorporations grew across every region in the UK with the exception of Scotland where the number of tech start-ups dipped slightly by 4 per cent and in the North East where the numbers remained flat.
Commenting on the figures, Kevin Harris, office managing partner at RSM in Leicester said: ‘Given the current economic uncertainty, it’s fantastic to see that tech start-ups across the East Midlands have continued their upward trajectory, and that the rate of growth in our region is higher than the national average.
“Our universities are playing a key role in developing the next generation of tech entrepreneurs and venture capital, private equity and traditional funders are still lining up to commit funds to the right projects.
“Tax incentives such as the Enterprise Investment Scheme, R&D tax credits, video games tax relief and the Patent Box regime are all playing their part in helping to fuel this growth.
“The challenge for start-ups, particularly in the tech space is to develop at speed and to scale-up fast. There can be a high rate of failures as projects can often get overtaken by new technological innovations or better resourced competitors. But get the formula right, find the right backers and success can be very lucrative.”
In order to support the growth ambitions of successful UK tech-based scale-ups, RSM has recently announced its partnership with Upscale 4.0 – a six-month accelerator programme delivered by Tech Nation. RSM will work with Tech Nation to offer its latest cohort of 30 companies access to its expertise and experience in a bid to assist the next phase of their growth ambitions.