UK becomes breeding ground for digital ‘unicorns’

As the number of digital tech firms in the UK and Europe continues to grow, some are well on the path to being classified as ‘unicorn’ companies, according to new research.

In their study, Manchester-based digital recruitment specialists Forward Role explored the concept of ‘unicorn’ companies around the world, and how their numbers are growing both in Europe and the UK.

In order to be considered a unicorn, a business must meet the following criteria: be a tech company with a bias towards internet/software; be founded in 2000 or later; and be worth $1 billion (around £690,454,420) or more if it were to be sold or floated.

These results were supplemented by findings by investment firm GP Bullhound, which revealed that 58% of unicorn businesses in Europe were founded by people aged between 35 and 40 years old. It also identified 12 businesses based in the North West of England that are predicted to become unicorns in the near future: Avecto, Blue Prism, Daisy, GB Group, The Hut Group, Missguided, NCC Group, On The Beach, Parcel2Go.com, RealityMine, UKFast, and Zuto.

CEO and Founder of My Parcel Delivery Group, David Grimes, explained what he believes it takes to become a unicorn: “Spot the market need before the market itself. Learn the art of attracting investment. Employ top people before you can really afford them. Be smart with your PR. Be prepared to work very, very hard. And never be afraid of failure.”

The number of potential unicorn companies emerging in the North West continues to grow, along with the expectation that the government’s plans for a Northern Powerhouse could make the region an even more attractive proposition for digital entrepreneurs.

The variety of industries in North West UK is considered a strong factor for this thriving entrepreneurial growth, and conducive for companies seeking their niche: Greater Manchester for media and digital; Leeds for the legal sector; Sheffield for advanced manufacturing; Liverpool for creative.

Meanwhile, the proposed HS2 and HS3 railways will ensure that the main Northern cities are connected to Birmingham and London, with some journey times being slashed to just 30 minutes. For both commuting and doing business, speedier travel times can only mean growth.

Richard Mercer, co-founder of Parcel2Go.com, believes these transport links will be essential: “Improved transportation will be fundamental to the Northern Powerhouse plan, and key to any budding business. The improvement of commuter journeys between the key Northern cities of Liverpool, Leeds and Sheffield into Manchester will give start-ups much better access to talent pools across the region.”