NEARLY 400 new technology companies were incorporated in Northern Ireland last year, an increase of 17 per cent on 2021, making it one of the fastest-growing tech sectors in the UK.
Analysis of Companies House data by audit, tax and consulting firm RSM shows that 393 new tech firms started up in 2022, up from 335 the year before.
And entrepreneurs in the north raised a record £100 million - a whopping 127 per cent increase on 2020 - of which three quarters came from investors outside the region, and which represented nearly a 10th of all venture capital activity on the island of Ireland.
Richard Gardiner, office managing partner for RSM Belfast said: “It’s an exciting time for the region as its strong base of software engineering skills has supported the development of several business clusters including cyber security, telecoms, mobile & data networks, AI & data analytics, IT & cloud services, fintech and sports tech.
“The Northern Ireland data is no surprise as it enjoys an ever-growing international reputation for expertise and knowledge in tech development.
“The venture capital increase from 2020 is extraordinary, and if incorporations are an indicator, this investment has continued and hopefully accelerated further.
“Not only are these locally owned firms successfully exporting internationally, but the region has attracted ongoing investment from large global technology leaders, both establishing new centres of excellence and expanding existing business operations.
“This is supported by the wealth of knowledge, skills, support, talent and entrepreneurship on offer. All in all, the tech sector represents an unsung success story for the region."
According to RSM, some 46,474 tech businesses were incorporated UK-wide in 2022, up from 38,240 in 2021. That's nearly double the 23,531 companies in 2020, demonstrating sustained growth in new tech incorporations year-on-year.
One recent start-up, augmented reality (AR) firm Imvizar, founded by Belfast-born Michael Guerin, has just secured €800,000 in seed investment from a group of prominent angel investors, including Gareth Lambe, former head of Meta (Facebook) in Ireland and Michael Dwyer, founder of Pigsback.com.
The company has recently launched innovative AR storytelling experiences in Ireland, UK, USA, Portugal and Australia, and its experiences range from a recreation of the Battle of Knockavoe in Strabane, to famous shipwrecks on the coast of Sydney, Australia.
Using cutting-edge AR, its experiences bring life-sized characters and environments to life around the user, creating an engaging and interactive way to experience the fascinating stories from that place.
Ben Bilsland, partner and technology industry senior analyst at RSM UK, said: “Despite the obvious economic challenges, it’s been another strong year for the tech industry. There is clearly appetite from entrepreneurs to start up new, innovative businesses and become part of the UK’s booming tech industry.
“This crop of early-stage businesses will need support to scale. Access to funding will be crucial and the government will need to ensure that UK tech is an attractive place for both domestic and overseas investment."
RSM measured technology incorporations in the following areas: computer games, computer programming, information technology and computer services, software publishing and development, web portals, and data processing and hosting.
