More than a third of Europe’s fastest-growing tech companies are based in the UK, following £27bn of investment in the British tech sector over the past five years, with the country now home to over 70 so-called "unicorn companies", valued at more than $1 billion (£784 million).
According to data compiled by technology entrepreneurs’ network Tech Nation and corporate intelligence firm Dealroom, the UK tech sector produced one unicorn firm each month over the past year, taking the overall total to 72.
The findings, released to coincide with London Tech Week, also show that the UK has created more billion dollar tech companies than any other country apart from the US and China.
London leads digital growth across the EU, with 45 unicorns based in the city, including 18 fintech firms, such as Monzo, Revolut and OakNorth, the report said. Since the start of 2019, companies such as Starling Bank, Deliveroo and Ovo Energy have also confirmed their unicorn status.
Six other UK cities - Cambridge, Oxford, Manchester, Leeds, Bristol and Edinburgh - are home to at least two tech unicorns.
Digital Secretary Jeremy Wright said: "As entrepreneurs and investors [take part in] London Tech Week, we must celebrate the achievements of the UK’s booming tech industry which is attracting record levels of investment and employing millions of people up and down the country.
"The tech sector is playing a crucial role in helping us deliver an economy that works for everyone through a modern industrial strategy for jobs and growth."
Tech Nation chief executive Gerard Grech said: "These figures show the extent to which the UK digital tech sector is rivalling those in the US and China, after an incredibly strong year of investment backing for fast-growing UK companies.
"The UK’s digital tech sector continues to go from strength to strength with unicorns now being produced right across the country."