The opportunities awaiting talented UK tech businesses in the U.S.
In this article, Achille Traore, the CEO at White Label Loyalty, discusses the opportunities awaiting talented UK tech businesses in the U.S.
Growth in the UK tech industry has led to London becoming coined as the “Tech Capital of Europe”. The industry sees continued backing from investors, who are attracted to the wealth of research and diverse talent the UK has to offer. In fact, last year the sector achieved its best year ever in terms of record investment. This has opened a space for upcoming start-ups to grow their businesses internationally. If we are to see UK entrepreneurs make their mark outside of Europe, they must be met with an inclusive and fair tech landscape.
U.S. is the first in line for fast-growing UK start-ups
Overseas investments have put the UK on the international stage for technology: “The region is more attractive to international investors than ever; 63% of investment into UK tech came from overseas in 2020”. The majority of this money flowing in comes from the US – “37% of all funding comes from the States” – an increase of +31.5% vs the previous year.
The US market offers UK businesses many opportunities. Firstly, there’s a much larger pool of tech available in the States, which means bigger appetites from investors and VCs too. Secondly, the U.S. tends to be less risk-averse than the UK, which lends itself well for high-potential growing startups.
Both the UK and US are also seen as leaders in the digital world; it’s essential that these nations work together to set global standards and best practices in the industry. Connecting these tech landscapes sets an ideal foundation for UK-based startups to break into a new market and grow into global leaders. However, for the US and UK technology sectors to be as successful as possible, collaboration must occur at both a global and local level.
UK Black Tech Founders will be flown to NYC to access US market
Making headway overseas involves founders expanding their networks and connecting with experienced leaders in foreign markets. Programs such as the UK Black Tech Founders Trade Mission are helping to build an ecosystem that jump-starts this process. The Trade Mission recognises that some businesses created by Black founders face obstacles when it comes to funding and investment. To stop minority founders being underrepresented in the tech space, the program is opening up opportunities for Black-founded companies to explore and understand the US tech landscape, giving them direct access to US investors.
It’s no secret that championing diversity in any industry is a win-win for investors, founders, and the overall economy. If an industry closes its mind towards different types of entrepreneurs, it will miss out on opportunities to invest in innovative products and their potential to create global companies.
The trade mission is also a great opportunity for companies looking to expand into the U.S. market – an area we are seeing high demand from. Success and the size of the U.S. market will likely lead to expansion In order to support the onboarding of large US clients. That’s why we hope to see more initiatives like this becoming available to entrepreneurs so that talented start-ups can have as much support as possible to launch their businesses internationally.
A tech-ecosystem driven by innovation and inclusivity
Innovative start-ups are plenty – a lack of talent or potential is not the problem. The issue lies where entrepreneurs from diverse backgrounds might face obstacles preventing them from quickly stepping into new markets. The challenges faced by stakeholders in the tech space can be addressed by building a new ecosystem that invests in diverse businesses, ultimately creating an industry that reflects the customers it serves. Government-backed programs are helping minority entrepreneurs step outside of the UK and into industries that are statistically exclusive.
With emerging talent and disruptive innovations, the outlook on the future of the UK tech industry is hopeful. Pair these factors with support from investors, and we will continue to see growth on a global scale. Greater representation fosters more innovation, and the founders who are developing new tech creations can lead us to this future where all entrepreneurs are welcomed.