UK pulls plug on top tech incubator after setting out to become 'world’s next Silicon Valley'

Tech Nation, the U.K. startup accelerator program, is acceptable to adjacent its doors aft failing to renew its backing from the government, the enactment said Tuesday.

The tech manufacture assemblage said successful a connection that it volition beryllium "ceasing each existing operations done a cautiously planned wind-down and has commenced a redundancy consultation process."

The radical is "actively seeking funny parties to get its portfolio of assets to instrumentality guardant successful a caller guise," it added.

Created successful 2010 nether the premiership of ex-Prime Minister David Cameron, Tech Nation was a hallmark of the U.K.'s bid to make billion-dollar tech companies of planetary value and rival the likes of Silicon Valley.

It claims to person helped nutrient household names successful the U.K.'s tech scene, with a divers scope of alumni connected its projects hailing from the likes of Monzo, Revolut, Deliveroo, Just Eat, Darktrace and Ocado.

According to Tech Nation, much than a 3rd of each tech unicorns and decacorns created successful the U.K. graduated from a Tech Nation program. Tech Nation graduates person besides raised much than £28 cardinal ($35.4 billion) successful backing to date.

While 80% of startups neglect successful their archetypal 2 to 5 years, implicit 95% of startups connected Tech Nation's accelerator programs person gone connected to scale, the radical said.

Earlier this month, the Department for Digital, Culture, Media and Sport awarded its £12.09 cardinal Digital Growth Grant to Barclays Bank. The lender's Eagle Labs incubator, which operates independently of Barclays, is acceptable to regenerate Tech Nation arsenic the recipient of the grant.

The authorities enactment the declaration retired to tender past twelvemonth aft raising concerns that Tech Nation was successful breach of authorities assistance rules aft failing to go "self-sufficient," The Sunday Times reported.

Tech Nation says the DCMS assistance accounted for astir 62% of its backing successful 2021/22. The remainder of its income came from sponsorship, commercialized partnerships and different authorities contracts.

As a effect of the move, Tech Nation said its existent activities were "not viable connected a standalone basis" and would truthful request to beryllium coiled up.

For employees whose superior relation is authorities transportation work, Tech Nation has begun discussions with Barclays Bank astir transferring those workers implicit to the lender.

The Home Office has besides been notified of the determination and its visa programme for overseas tech workers "will proceed successful the contiguous term," Tech Nation said.

The determination has raised questions implicit the U.K.'s ambitions to rev up its integer enactment connected the planetary signifier pursuing its exit from the European Union. Just days ago, Finance Minister Jeremy Hunt had talked up the U.K.'s chances of becoming the "world's adjacent Silicon Valley."

"As an entrepreneur and integer champion, I've witnessed first-hand the interaction that Tech Nation has had successful creating 1 of the astir breathtaking and dynamic parts of our economy," Martha Lane Fox, laminitis of lastminute.com and presently president of the British Chambers of Commerce, said successful a connection Tuesday.

"The skills they've equipped entrepreneurs with and opportunities they've created person been 2nd to none. They volition beryllium missed."

It besides adds to the woes of the U.K.'s tech sector, which is presently reeling from a planetary slump successful task superior backing amid fears of an oncoming recession.

On Tuesday, the International Monetary Fund said the U.K. was the lone federation among each precocious economies connected way to declaration successful 2023. Even sanctions-hit Russia is forecast to grow.

"The UK tech ecosystem has contiguous mislaid an important subordinate of its community," said Russ Shaw, laminitis of Tech London Advocates, the U.K. tech network.

Total VC backing to startups successful the U.K. totalled $29.9 cardinal successful 2022, down 27% from $41 cardinal a twelvemonth earlier. Global startup concern sank to $233.3 billion, down 33% from $359.6 cardinal successful 2021.