This surge was broad-based, with almost every region of the UK experiencing higher figures. Wales and the West Midlands led the growth, while regions including the East of England and North West also posted significant rises. The only exception was the South East, where numbers remained flat, a trend RSM UK attributes to local skills shortages.
RSM UK director Georgie Bole described the figures as a clear sign of confidence in the strength of the UK tech ecosystem. Even against a backdrop of economic uncertainty during 2025, tech founders pushed ahead with new ventures, underlining the resilience of the sector. Bole noted that technology businesses are increasingly attractive to investors because they support a wide range of industries and drive broader economic growth.
The sustained momentum wasn’t just an end-of-year phenomenon. Throughout 2025, quarterly analyses found record highs in tech incorporations. For example, the second and third quarters both saw historic peaks in the number of new firms being set up, with a particularly strong performance in Q3 — when new tech companies increased by around 36 % year-on-year.
This continued uptrend reflects a tech sector that is rapidly adapting to change and is undeterred by broader market pressures. According to RSM UK’s own Technology Industry Outlook, more than three-quarters of tech business leaders remain confident their companies will grow under the current government — a strong endorsement of the UK’s business environment for innovation.
However, RSM UK also highlighted challenges that accompany rapid growth. A shortage of skilled talent remains a concern, particularly in certain regions, and could slow future expansion if unaddressed. Encouragingly, the report suggests that attracting and retaining tech graduates and international talent will be key to maintaining this upward trajectory.
Overall, the record number of tech incorporations in 2025 paints a positive picture of the UK tech ecosystem: ambitious founders are launching new ventures, investors are backing innovation, and confidence in the sector’s future remains high.
