Tech IPOs raised a record £6.6 billion in 2021
London managed to attract overseas companies such as Danish TrustPilot and Canadian AlphawaveIP
The UK tech sector raised a record £6.6 billion in 2021 from initial public offerings (IPOs) in 2021, spearheaded by companies such as Wise and Trustpilot.
This is more than double the amount raised during the same period in 2020 (£3.1 billion), according to data released by the London Stock Exchange (LSE).
Last year saw 126 companies debuting on the LSE, out of which 37 (29%) were tech companies – a significant increase from the eight tech companies that listed in 2020.
One of the most heralded debuts came from Wise, which in July became the “largest-ever tech listing” on the LSE. Months prior, while Cambridge AI-startup Darktrace debuted on the exchange with a share surge of 43%.
On the other hand, 2021 also witnessed the ‘worst IPO in London’s history’, which saw Deliveroo lose almost £2 billion from its initial £7.6 billion market capitalisation.
London managed to attract overseas companies including Danish TrustPilot, Canadian AlphawaveIP, and the American Devolver Digital, helping the UK’s markets become “some of the world’s most international and diverse”, according to Economic Secretary to the Treasury John Glen.
“The government is working with firms, the regulators and the stock market to make the UK even more attractive for companies to list,” he said. “The work does not stop here and we will continue to support the UK’s cutting-edge tech sector by making our markets even more attractive.”
Digital minister Chris Philp described 2021 as a "brilliant" year for UK tech.
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“It’s great to see just how many companies have grown from startup to scale-up, to finally becoming publicly-listed businesses on the London markets," he said.
"Global investors hold London’s capital markets in high esteem and as we implement clear governance around innovative fast-growth companies, including rules around AI and data, we believe even more companies will appreciate the advantages that listing in London can give them."
The last year also saw a record amount of investment in the UK’s tech sector, with £13.5 billion of venture capital coming into the country during the first six months of 2021 – almost triple the amount made over the same period in 2020. This was also more than France, Germany and Israel combined.
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