The document discusses the growth of the UK's digital economy. It highlights several success stories of UK digital companies that have been acquired or grown significantly, such as Unruly, Fanduel, Nutmeg, Magic Pony, Deliveroo, and Farfetch. It identifies four key drivers of the UK's digital economy growth: 1) smart capital/investment funding; 2) a strong business and policy environment; 3) a rich ecosystem and connected networks; and 4) creative talent and expertise. The document promotes the growth of the UK's digital sector and economy.

1. Gerard
Grech
CEO,
Tech
City
UK
November
2016
@TechCityUK
@gerardgrech
Developing
a
Agenda:
-­‐ National
context
-­‐ Success
stories
-­‐
4
key
drivers
of
digital
economy
growth
-­‐
Why
is
this
all
so
important?

2. Who
are
we?
1.
programmes
|
2.
policy
convening
|
3.
advocacy
-­‐
Founding
stage
-­‐
12,000+
in
training
-­‐
50%
want
to
start
their
own
business
-­‐
Later
Stage
-­‐
$3bn
raised
-­‐
10
acquisitions
Most
comprehensive
annual
analysis
of
the
UK’s
Digital
Tech
Economy
-­‐
Mid
stage
-­‐
Mentorship
program
-­‐
£200M+
raised
Accelerating
digital
growth
across
North
of
England
Concierge
service
for
fast-­‐growth
US
tech
companies
Dedicated
Visa
Scheme
for
hiring
digital
tech
talent
Best
practice
mini
reports
to
share
learnings

3. 3
British
Digital
Tech
Economy
is
growing
steadily
Tech
Nation
2016
Report
£161Bn
Total
Digital
Turnover*
+32%
than
the
wider
UK
Economy
Growing
Source: Tech Na.on 2016 Report, Tech City Uk/Nesta
*based on 58K iden.fied Digital Businesses
@techcityuk
@gerardgrech

4. Recent
OECD/McKinsey
report
(Aug
2016)
puts
UK
in
top
ranking
on
digital
share
of
economy;
a
great
place
to
build
form

5. Acquired
by
News
Corp
in
2015
–
example
of
traditional
industries
being
transformed
by
disruptors
Acquired
for
£114million
News
Corp
harnesses
Unruly
to:
•
Bet
big
on
mobile
and
video
-­‐
launch
a
new
vertical
video
ad
format
purpose
built
for
mobile
audiences
• provide new insights to its
adver.sers and improve ad
engagement

6. 400 employees in:
New York, Edinburgh,
Glasgow, Orlando &
Los Angeles
Fanduel
Web-­‐based
fantasy
sports
game
and
the
largest
daily
fantasy
sports
company
in
the
industry.
As
of
April
2016
most
U.S.
states
consider
fantasy
sports
(including
daily
fantasy
sports)
a
game
of
skill
and
not
gambling.
@techcityuk
@gerardgrech

7. Finance
&
Fintech:
Nutmeg
Nutmeg
provides
low-­‐cost
online
wealth
management
makes
investment
expertise
accessible
to
millions
of
people
who
usually
couldn’t
afford
advice
@techcityuk
@gerardgrech

8. MagicPony
London
based
Artifical
Intelligence
company
–
uses
neural
networks
–
systems
that
are
designed
to
think
like
human
brains
Twitter
acquired
Magic
Pony
Technology
to
provide
expanded
data
for
images,
used
to:
• enhance
a
picture
or
video
taken
on
a
mobile
phone
• help
develop
graphics
for
virtual
reality
or
augmented
reality
applications.
June
2016
$150
million
deal

9. Deliveroo
Raised
another
$275
million
in
funding,
a
Series
E
investment
-­‐
values
the
company
at
around
$1
billion.
The
investment
will
go
into
growing
its
service
in
both
new
and
existing
markets
&
investing
in
its
new
initiatives
-­‐
includes
a
new
B2B
remote
kitchen
service,
RooBox
-­‐
gives
restaurants
access
to
delivery-­‐only
kitchens
in
key
locations
Live
in
84
cities
Facing
heat
from
competitors
-­‐
targeting
the
higher
end
of
the
prepared
food
market
–
rivals
include
Uber,
which
has
stormed
into
Europe
with
UberEATS,
as
well
as
others
like
Delivery
Hero,
Just
Eat,
and
Amazon

10. Farfetch
Platform
for
luxury
brands
and
boutiques
from
around
the
globe,
everywhere
from
Tokyo
to
Toronto,
from
Milan
to
Miami.
Farfetch
was
founded
in
London
in
2008
by
the
Portuguese
entrepreneur
José
Neves
and
now
has
offices
in
nine
countries
globally.

11. TransferWise
Banks and other providers oVen add markup to their exchange rate -­‐ TransferWise transparently
displays its fee upfront and deducts it before conversion
Latest
funding
values
TransferWise
at
£750
million

12. 12
The
impact:
>40%
of
European
‘Tech
Unicorns'
($1bn+)
are
in
the
UK
@techcityuk
@gerardgrech
47
European
Unicorns
19
UK
Unicorns

13. 3.
Rich
ecosystem
&
connected
nation
1.
Smart
capital
2.
Strong
business
&
policy
environment
4.
Creative
talent
&
critical
mass
of
expertise
4
Key
growth
drivers
powering
the
UK’s
digital
economy

14. 1.
More
funds
now
exist,
opening
up
new
opportunities
and
securing
the
growth
potential
of
talented
teams

15. Selected
Recent
UK
IPOs
$552M
Gross
Proceeds
$3,341M
Gross
Proceeds
$2,042M
Gross
Proceeds
$597M
Gross
Proceeds
$580M
Gross
Proceeds
2,074 2,010
2,536
59
0
1,672
63
8
36
4
31
8
14
6
2
9
0
50
0
100
0
150
0
200
0
250
0
300
0
LSEG NYSE NASDAQ SGX HKSE
#ofCompanies*
London
Stock
Exchange
is
a
hub
for
international
businesses
Domestic
International
@techcityuk
@gerardgrech

16. London/UK
has
a
strong
investment/VC
eco-­‐system
In
2015,
5x
more
VC
investment
than
2010.
>30%
of
all
EU
VC
money.
UK
companies
consistently
raise
>30%
of
all
European
VC
money
th
UK
VC-­‐Backed
Investment
Activity
Top
Deals
&
Cities,
Q1’16
@techcityuk
@gerardgrech
$5B
$13B
$12B
$7B$7B
$5B
$3B
$2B
$0B
$2B
$4B
$6B
$8B
$10B
$12B
$14B
2016)YTD2015201420132012201120102009
Total-VC-Capital-Invested
UK Germany France Israel Russia Sweden Switzerland RoE

17. 82.
End-­‐to-­‐end
policy
conditions
for
tech
growth
are
ripe
Regulatory
environemnt
is
key
>£2.75
Bn
latest
market
Cap
>£1.1
Bn
latest
market
Cap
4.
Corp
Tax:
17%
(joint
lowest
in
the
G20)
1.
Seed
Enterprise
Investment
Scheme
&
EIS:
50%
relief
on
capital
gains
tax
3.
Visas:
Entrepreneurs’
Visa,
Tech
Nation
Visa
2.
R&D
Tax
Credits:
fueling
innovation
5.
London
Stock
Exchange
high
growth
segment
@techcityuk
@gerardgrech

18. UN
E-­‐Government
Survey
2016–
UK
ranked
No.1
• E-­‐Government
development
Index
ranked
UK
No.1
• E-­‐Participation
index
ranked
UK
No.1
• E-­‐government
to
provide
public
services
through
one
stop-­‐platforms
&
online
transactions
• Ensures
that
public
institutions
are
more
inclusive,
effective,
accountable
&
transparent
• Drive
towards
Open
data
for
public
information
&
scrutiny

19. 3.
Rich
Ecosystem:
>60
UK
tech
accelerators,
>100
co-­‐
working
spaces
&
50+
tech
business
support
orgs
@techcityuk
@gerardgrech

20. Edinburgh
@techcityuk
@gerardgrech

21. hAps://
vDme.net/
Liverpool
@techcityuk
@gerardgrech

22. Bristol
@techcityuk
@gerardgrech

23. Bradfield
Centre
Cambridge
@techcityuk
@gerardgrech

24. 2
4
+2.8x
1.56M
UK
Tech
Jobs
Jobs
growing
41%
In
non-­‐digital
industries
like
educaOon
&
Finance
Faster
than
the
wider
economy
£50K
Average
UK
Tech
salary
+36%
Higher
than
UK
average
salary
4.
The
UK’s
tech
talent
pool
is
growing
fast
Source: Tech Na.on 2016 Report, Tech City Uk/Nesta
@techcityuk
@gerardgrech

25. 8The
pool
is
deep
&
extensive,
with
international
HQs,
world
class
institutes
&
top
research
universities
International
&
EU
HQs
Technology
Institutes
World
–
Class
Universities

26. 38
ROUNDS
£1.5
Bn
RAISED
+
£1.22
Bn
RAISED
FROM
5
IPOs
+
10
ACQUISITIONS
In
the
last
20
months…
Good
conditions
create
great
companies
@techcityuk
@gerardgrech

27. Why
is
all
this
so
important?
We
need
to
create
a
sustainable
ecosystem
and
future-­‐proof
the
economy
and
controibute
to
making
it
more
resilient
&
productive.
InsDtutes
UniversiDes
Govt.
Dept.
(naDonal
&
Inter).
Local
AuthoriDes
Investors
Entrepreneurs
Corporates
Incubators
Accelerators
Stock
Exchanges
Colleges
InternaDonal
hubs
@techcityuk
@gerardgrech
Developers

28. |
Thank
you
for
listening.
Gerard
Grech,
CEO,
Tech
City
UK
Visit
our
website:
Techcityuk.com
Follow
us
on
Twitter:
@techcityuk
@gerardgrech