UK startups founded to build sustainable solutions to global problems have raised £2 billion of investment in 2021, according to figures from Dealroom.
So called 'impact' startups that aim to tackle United Nations Sustainable Development Goals have seen a 127% investment increase since 2018.
Big Issue Invest announces Tech for Good winners How to build a unicorn A guide to the UK’s tech sector
The findings come ahead of the government's Future Tech Forum which starts in London this week. The two day event will have a particular focus on how technology can deliver positive global change and deliver some of the government's targets agreed by nations at COP26.
Impact investing has come a long way since its start in the late 90s when it was considered more of a philanthropic endeavour, according to Luisa Alemany, associate professor of management practice in strategy and entrepreneurship at London Business School's Institute of Entrepreneurship and Private Capital.
The mood towards impact startups changed, she said, when investors realised these investments could deliver not only a social benefit but also a financial return.
"At the heart of this is technology, as the way to scale social impact is by applying science and technology," Alemany said.
RELATED RESOURCE
Shining light on new 'cool' cloud technologies and their drawbacks
IONOS Cloud Up! Summit, Cloud Technology Session with Russell Barley
"From biotech to nanotech, cleantech, computer science and medicine, technology is not only improving our lives but finding solutions to these pressing problems that only entrepreneurs, with the right source of financing, can dare to solve."
The UK is now home to 12 impact unicorns, with six based outside of London: ITM Power from Sheffield, Ceres Power Holdings in Horsham, Bristol-based Vertical Aerospace and Ovo Energy .Britishvolt from Bath and BeneveolentAI in Cambridge. Arrival, Octopus Energy, Babylon, Compass Pathway, Depop and Tractable are all based in the capital.
What's more, there are now 22 impact "futurecorns", which are companies on track to reach unicorn status within the next few years.
-
How to implement a four-day week in techIn-depth More companies are switching to a four-day week as they look to balance employee well-being with productivity
-
Intelligence sharing: The boost for businessesIn-depth Intelligence sharing with peers is essential if critical sectors are to be protected
-
Intel makes high-level hires while factory workers are warned of layoffsNews The company is appointing four senior executives as part of efforts to refocus on engineering and customer relationships
-
UiPath names Simon Pettit as new AVP for UK and IrelandNews The seasoned leader will spearhead region-specific transformation projects as UiPath looks to drive operational growth and customer engagement
-
How to empower employees to accelerate emissions reductionin depth With ICT accounting for as much as 3% of global carbon emissions, the same as aviation, the industry needs to increase emissions reduction
-
Worldwide IT spending to grow 4.3% in 2023, with no significant AI impactNews Spending patterns have changed as companies take an inward focus
-
Report: Female tech workers disproportionately affected by industry layoffsNews Layoffs continue to strike companies throughout the tech industry, with data showing females in both the UK and US are bearing the brunt of them more so than males
-
How can small businesses cope with inflation?Tutorial With high inflation increasing the cost of doing business, how can small businesses weather the storm?
-
How to deal with inflation while undergoing digital transformationIn-depth How can organizations stave off inflation while attempting to grow by digitally transforming their businesses?
-
How businesses can use technology to fight inflation
TUTORIAL While technology can’t provide all the answers to fight rising inflation, it can help ease the pain on businesses in the long term
