Tech Nation to shutter after more than a decade

Tech Nation has introduced that it’s going to stop operations after more than a decade supporting the UK’s startup ecosystem, following the lack of core funding to Barclays.

In January 2023, the Department of Digital, Culture, Media and Sport (DCMS) introduced it had awarded its £12m Digital Growth Grant to Barclays’ startup incubator, Eagle Labs, which is ready to take over from Tech Nation in administering the funding from the top of March onwards.

Many within the UK tech sector – together with founders, executives and traders – have spoken out against the decision, arguing that “providers of government-backed support should be grounded in the startup ecosystem and local ecosystems across the country – not looking to ride on its coat-tails”.

Tech Nation stated that, as a direct results of the DCMS grant withdrawal, will probably be ceasing all current operations by a fastidiously deliberate wind-down, and has commenced a redundancy session course of for workers.

It added that additionally it is actively in search of events to purchase its portfolio of property to take ahead below a new guise.

“We have exhaustively explored whether Tech Nation could continue without core government grant funding, but have concluded after extensive consultation that this is not an option,” it stated in a press launch. “Firstly, as a result of it’s not viable for vital mass and influence. The work we do with our accelerator applications, insights and analysis stories, the Growth Platform, visa processing for the Home Office, and a lot more, has all been constructed on the muse of our core grant funding from DCMS.

“With this foundation removed, Tech Nation’s remaining activities are not viable on a standalone basis and the unique Tech Nation model that we have built upon this foundation can no longer be supported.”

Tech Nation stated the Home Office had been notified of its plans to stop operations, however that it could proceed operating its Global Talent visa programme within the speedy time period. In the yr to September 2022, 2,560 visas have been granted below this route.

“We are working closely with Tech Nation to ensure continuity of the digitech strand of the Global Talent visa in the short term, whilst we explore the long-term changes necessary in light of Tech Nation’s planned closure,” stated a Home Office spokesperson. “We will also take every available step to ensure that applicants already part of the Global Talent route are not disadvantaged by the closure, so the UK can continue to benefit from the brightest and best living and working here.”

Gerard Grech, founding CEO of Tech Nation, added that the agency has had a “huge positive impact” on the UK’s digital economic system.

“Many of Britain’s most successful tech companies, from Monzo to Deliveroo, and from Skyscanner to Darktrace, have passed through one or more of Tech Nation’s growth programs,” he stated. “We have helped champion and help innovators in every thing from AI [artficial intelligence] to fintech to local weather tech and more. In doing so, we have now helped unfold digital progress and jobs nationwide. For each pound invested in Tech Nation, we have now returned £15.

“I want to express my sincere thanks and gratitude to the Tech Nation team, to our ecosystem partners and all the inspirational innovators and entrepreneurs we have worked with along the way,” stated Grech. “I am grateful to the government’s support over nine years, and feel proud of all we achieved. It has been an incredible journey. Together we have made the UK tech economy a global powerhouse for tech talent and now third in the world for tech investment, after the US and China.”

Commenting on the shuttering, a DCMS spokesperson stated the division has supported Tech Nation since 2017 to speed up the expansion of startups and scaleups throughout the UK.

“Our decision to make the Digital Growth Grant competitive brings the funding into line with the majority of government grants,” they stated. “Barclays Eagle Labs was successful because their application represented the best value for taxpayers’ money, will benefit the most startups and scaleups over the next two years, and was scored highest by an independent panel. We are committed to supporting Tech Nation until March 2023.”