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Over 1K UK tech startups collapsed amid pandemic: report

Here’s how coronacrisis has affected UK startups

UK tech startups

Over 1K UK tech startups collapsed amid pandemic: report. Source: pixabay.com

ComputerWeekly.com reports that among the UK’s 30,000 startups, a total of 1,067 have filed for administration, liquidation, or dissolution since lockdown.

Of these, 273 fast-growth companies made filings in September alone making it the highest monthly figure for a decade. In fact, that’s a 181% month-on-month increase from August.

Besides, nearly 388 of the startups that have gone into administration since March were based in London. It also recorded a 217% rise in filings between August and September.

Meanwhile in Scotland, 48 startups filed in September, just under half of the entire number of filings made since the start of April.

According to Andrew Roughan, Plexal managing director, filings were kept artificially low at the beginning of the pandemic by government support schemes. However, their effect is starting to disappear.

The government commendably offered a number of startups a lifeline at the peak of the crisis. But despite the slowly improving funding picture, we are now starting to see the pent-up effect of the pandemic on UK businesses – in particular, early-stage startups
Andrew Roughan, Plexal managing director

We’ve reported that Curve has collaborated with UK core banking technology provider Thought Machine to power its new credit and loan offering, Curve Credit.

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