Birmingham, the UK’s second-largest city, is a major tech and business hub. Home to over 2,000 tech startups and more than 6,000 tech businesses, the city is booming with innovation and growth.
Fastest Growing Tech Sector
The tech sector in the West Midlands has been the fastest growing in the UK in both 2021 and 2022. Venture capital investment in Birmingham tech startups reached its highest level in 2023, even excluding a £500m “megaround.” Investment more than doubled compared to previous years.
“Birmingham’s tech sector has seen exciting developments, industry-wide collaborations, and increased investor attention,” says Rebekah Taitt, Lloyds Bank’s Regional Development Director for Midlands, SME & Mid Corporate. “Tech startups in the city are scaling quickly, bringing new challenges like managing international investments and attracting top talent. Lloyds Bank is dedicated to supporting Birmingham tech businesses as they grow.”
Birmingham’s Tech Ecosystem
Around 40% of the West Midlands’ tech workforce is in Birmingham, with 56,000 tech employees out of 144,000 in the region. The city’s five universities contribute significantly to a large, diverse talent pool and provide research facilities and business incubation services.
“The robust talent pipeline with 132,000 students studying core subjects at West Midlands universities strengthens Birmingham’s position as a leading tech hub,” says Svetlana Solomonova of BDP.
Community and Collaboration
The city’s success is largely due to its talented and ambitious residents. “Birmingham’s tech ecosystem is a special place,” says Yiannis Maos, founder and CEO of TechWM. “The ecosystem welcomes key players from major industries, driven by the friendly, ambitious, and energetic people of Birmingham.”
Local companies like Phoebus Software, founded in 1989, play a crucial role in the tech ecosystem. Phoebus, which provides agile technologies to the financial services sector, partners with local charities and universities to support the business community and social causes.
Industrial Legacy and Innovation
Birmingham’s industrial legacy continues to influence its tech sector. The city was once known as ‘the workshop of the world,’ and it still produces innovations in science and manufacturing. The West Midlands contributes 8% of the UK’s total medtech turnover, thanks to collaborations between key players like the University of Birmingham and Queen Elizabeth Hospital Trust.
Subsector Strengths
Birmingham excels in fintech, digital marketing, and gaming, with 25% of the UK’s gaming sector based in or around the city. The city’s excellent infrastructure and transport connections create a strong business proposition, attracting significant foreign investment.
Future Development
Birmingham’s tech sector has made remarkable progress, but sustaining this growth requires continued collaboration and investment. Initiatives like Birmingham Tech Week and partnerships with established institutions like Lloyds Bank play a crucial role in supporting the city’s tech businesses.
“Birmingham’s vibrant tech sector contains an important mix of disruptive startups, successful scaleups, multinationals, and longstanding tech businesses,” says Lewis Sheen, Relationship Manager for the technology sector at Lloyds Bank. “It remains crucial for all tech businesses to have access to the right support and financing options.”
Birmingham’s tech ecosystem is thriving, driven by talent, innovation, and strong community support. The city is well on its way to becoming a global tech leader. The Birmingham Digital Partnership recognises that there are multiple tech ecosystems across the City that are driving innovative and transformative activities and it will add its support to enhance Birmingham’s digital credentials across the world.