Last year saw 581,000 new companies created in the UK during 2014 and results this year show 2015 is on track to be another record-breaker, with over 600,000 startups expected to launch. The tech sector continues to see the largest amount of growth, especially in London, which has seen tech services shoot up by an incredible 200%!
Figures like these go a long way towards explaining why the UK in its entirety has become such a hub of activity for tech startups. Success attracts more success and the tech sector has seen a number of London and UK-based startups go from nothing to a success (seemingly) overnight. The UK has also become a hub for many a venture capitalist, most of whom are pulled here by the attractive investment opportunities offered by the great number of tech startups.
One such startup which has recently moved to the UK, to take advantage of the vast number of opportunities offered, is Leaf.fm. The music startup was originally founded in Costa Rica but has now found its way to the UK’s north-east.
The startup, an accessible mobile-first music discovery and engagement platform, has had the best possible start since moving to the north-east, having recently won the Newcastle-based Northern Stars pitch competition which was run by Tech North. Other entrants included: Noteu, a ‘smart companion’; Experiently, a marketplace employment platform; Mindmate, an app for those with dementia and their carers; One Third Stories, a language tool; telemarketing lead generator Yak Hub; video interaction changer Reframed and 3D printing tech company Whispering Gibbon.
The competition saw Leaf.fm and seven other tech startups pitch to a crowd of approximately 100 people. Leaf.fm won the audience vote, which led to Gilbert Corrales the company’s co-founder being awarded an iPad, tickets to Thinking Digital Manchester and free Sage One business software.
The competition also provides its entrants with the opportunity to compete to be one of ten companies selected to attend TechCrunch Disrupt and the chance to deliver a pitch to investors at Bloomberg in London.
Upon winning the main award, Corrale emphasised how important the Northern Stars competition was, not only for Leaf.fm but in raising the profile of the northern region of the UK as a tech hub. The Northern Stars competition helps support aspiring entrepreneurs via the creation and convening of regional peer-to-peer networks, where individuals and startups are given the opportunity to showcase their talents.
Tech North, the organiser of the competition is part of the wider initiative Tech City UK, and it is focused on increasing the number of tech opportunities in the north, as well as speed up the growth of the North’s digital economy. The initiative currently focuses on the following cities: Hull, Leeds, Liverpool, Manchester, Newcastle, Sheffield and Sunderland.
Even though Leaf.fm was the overall winner of the competition, all of the other companies involved will still have access to support through Tech North. This ongoing support will include informal advice and mentoring, and crucially, introductions to investors.
Attracted to the north-east as a result of Sirius, a Newcastle-based UK Trade and Investment (UKTI) programme, Leaf.fm’s founders now state that, having seen the fantastic number of opportunities available in the north-east, they are there to stay.
Upon being asked about possibly relocating to London, Corrale responded: “But why would we? We have access to great talent from the universities here and the quality of life we can have is better than we would get elsewhere. We’ve been growing very, very well and now our focus is more on retention and engagement.”
Tech North’s Community Engagement and Partnerships Manager, Paul Lancaster states how they want “the Northern Stars programme to be a showcase for all the great stuff going on in each city and in Newcastle we’ve achieved that.”
Stories such as Leaf.fm’s provide a great sign that the north is expanding its digital economy and this, in turn, is an overall positive sign that the UK is being seen as an exciting location for tech startups to locate and grow their companies.