What were the six fastest growing sectors of 2020?

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According to data released this week by Beauhurst – a database of the UK’s high-growth companies – has revealed the six fastest-growing sectors of the last 12 months.

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In the report, Beauhurst announced that despite the impact of the coronavirus pandemic, some industries have thrived through the struggles facing the wider business community over the last year.

With the evolving story of the spread of the virus – and the government’s fragmented response – many companies have fallen and many others are barely keeping afloat.

However, the tech sector seems to have taken steps forward, both in terms of innovation and profitability.

The Beauhurst data reveals the fastest growing tech start-up industries in relation to the equity fundraising comparison to the previous year, both in terms of the number of completed deals and the total funds raised.

What are the fastest-growing tech start-up industries?

  • Challenger banks
  • Cryptocurrencies
  • Digital security
  • Fintech
  • Insurtech
  • Quantum

Challenger banks

Credit: Beauhurst

Challenger banks received an increased amount invested into these companies, which totalled £869m in 2020 —a 19% increase from 2019. The number of deals completed grew 115% to 28.


Credit: Beauhurst

This sector saw an incredible growth of 1,533% in transaction value and 113% increase in deal numbers between 2019 and 2020. This meant that more than £539m was invested across 32 deals last year.

Digital security

Credit: Beauhurst

Companies within this subsector secured a total of £522m across 55 announced funding rounds in 2019. However, it saw an 87% growth in 2020, as more than £976m across 75 funding rounds. This also marked a 36% increase in deals completed last year.


Credit: Beauhurst

Perhaps the largest sub-sector, fintechs between 2019 and 2020, saw deal numbers increase by 9%, from 209 to 227. They also received a 35% increase in value invested from £2.44bn to £3.29bn.


Credit: Beauhurst

Beauhurst has reported that the insurtech industry has seen an incredible rise over the past five years. Just £8.68m was deployed across three announced equity funding rounds in 2015. However, this increased to £207m across 28 rounds in 2020. Between 2019 and 2020, the amount invested grew 47%, while the number of rounds completed rose 12%, surpassing the previous record of 27 deals in 2018.


Credit: Beauhurst

In the Quantum sector, 2020 saw the most activity to date, with eight deals completed. This was double the total in 2019. In terms of the value, the 2020 total of ivestment was £67.4m, which was more than seven times the £8m invested in 2019.

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