Tech company start-ups in Scotland jump by 77 per cent

The number of new tech companies set up in Scotland rose by 77 per cent in 2017, a report has found.

There were 440 software development and programming businesses incorporated in Scotland last year

There were 440 software development and programming businesses incorporated in Scotland last year, a 77 per cent increase on the 249 companies set up in 2016.

Analysis by RSM found that UK-wide there were 10,016 technology businesses incorporated in 2017, with year-on-year rises recorded in every region.

Ross Stupart, partner at RSM in Edinburgh said: “These figures show very clearly that despite the fears of a post-referendum slowdown, Scotland’s tech sector is growing at a healthy rate.

“There are a number of reasons for this. Scottish universities are playing a key role in developing and nurturing exceptional talent and we continue to attract the world’s brightest and best. Organisations such as EIE, FutureX Innovation, Start-up dinners, Turing Festival and Entrepreneurial Scotland are also contributing significantly in creating a vibrant and supportive tech eco-system.

“Entrepreneurs are able to gain good access to finance, either through traditional sources of debt at relatively cheap rates, or from venture capitalists, angel networks and private equity funds.

“The UK’s tax regime is also proving to be an incredibly powerful tool in encouraging tech businesses, who take advantage of legitimate tax saving and incentive programmes. These include the Research & Development tax credits, video games tax relief and the Patent Box regime. The Enterprise Investment Scheme also provides valuable tax reliefs to investors which helps earlier stage tech businesses raise funding.”