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Emerging Growth Insights and the Fast 50

Making it to the exit: timing and profitability

The UK Technology Fast 50 annually showcases the country’s fastest growing tech companies, ranked by revenue growth over a three‑year period. It is the UK’s longest‑running business growth awards programme, and as the high growth sector has transformed in lockstep with the meteoric rise of the UK tech scene, we have been there every step of the way, recognising some of the most successful startups of the last few decades.

This year’s Fast 50 boast total revenues of almost £2 billion between 2023 and 2024, with an average growth rate of 2,468% since 2021.

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Emerging Growth Insights and the Fast 50

Foreword

Kiren Asad, UK Technology Fast 50 Lead Partner

For 27 years, Deloitte Technology Fast 50 programme has celebrated the dynamism and innovation of UK high-growth tech companies. Today’s scaleups are as charged as ever, continuing to demonstrate resilience and ambition within a challenging economic landscape.

This year’s Fast 50 boast total revenues of almost £2bn between 2023 and 2024, with an average growth rate of 2,468% since 2021. These impressive figures underscore the significant impact entrepreneurs have on the UK economy – a fact further reinforced by Deloitte’s research conducted with Shopify, in which we compiled a global entrepreneurship index.

“The ambition to exit remains strong – and optimism prevails amongst CEOs.”

This index places the UK second in the G7 for the contribution entrepreneurs make to the overall economy. The index also found that UK entrepreneurs generate around £30bn of business activity each year and have continued to grow their exports by high single digital percentages each year, despite headwinds from Brexit. 

The current climate, and the shift since the early COVID years, requires a strategic recalibration, prompting entrepreneurs to carefully consider the complexity, timing and profitability of their exit strategies. The ambition to exit, however, remains strong – and optimism prevails amongst CEOs looking to fundraise, signifying continued confidence in the long-term potential of the UK tech sector.

As we look ahead, the UK’s attractiveness as a destination for high growth tech companies will depend on its ability to adapt to this evolving landscape. The companies featured in this report, with their tenacity and innovative spirit, provide a dose of optimism and hope for UK tech amidst tough times. Their journeys offer valuable insights for aspiring entrepreneurs and investors alike, highlighting the importance of strategic planning, adaptability, and a commitment to building sustainable businesses.

What's next for UK tech?

As the UK strives to cement itself as a tech superpower, how can we stay above international competition and economic shifts?

Executive summary

The Fast 50

London

is the top region for Fast 50 companies

SaaS/ Cloud

is the top sub-sector for Fast 50 companies

41.8%

of funding raised by Private Equity and Venture Capital

CEO Survey findings

63.1%

of respondents aim to expand into the US in the next 1‑2 years

57.2%

of respondents aim to raise growth capital in the next 1‑3 years

55.4%

of respondents intend to exit their business in the future

The high-growth tech ecosystem

179

number of exits by Fast 50 alumni

388

number of exits by tech companies (2023)

Wise

largest exit (£7.96b) by a high‑growth tech company (2019‑H1 2024)

UK tech trends

A word from...

Sarah Briddon
Head of UK Digital, Tech & Comms at Citi Commercial Bank

 

The UK technology landscape is dynamic, globally competitive and exciting: the country can be proud of its achievements in a sector that is crucial for future prosperity. But success does not occur in a vacuum. It requires a rich ecosystem that can nurture companies as they advance from bright ideas to startup, through successive financing rounds to – in some cases – a trade sale, acquisition by a private equity fund, or IPO.

Banks are key to this ecosystem, helping to drive the growth of UK tech companies by providing financial products and services, fostering strategic partnerships, and offering advice and expertise.

Equity funding can be vital for tech companies, especially in their early stages. Banks can leverage their networks to connect startups with investors, including venture capitalists, angel investors, and family offices. Some banks and their private market clients may also offer venture debt, a financing option tailored for high‑growth, venture‑backed companies.

Young tech firms’ needs can change rapidly and they typically prioritise growth over immediate profits, making flexible financing indispensable. Some banks can provide options such as Annual Recurring Revenue financing, which offers capital based on predictable subscription income, or bridging loans, which cover short‑term funding gaps while companies secure larger investments.

Companies also need to consider working capital finance, which helps fund day‑to‑day operational expenses and is often described as the ‘lifeblood’ of companies. Early‑stage tech companies’ unpredictable cash flows may make it difficult to meet upfront costs, ranging from developing their product to marketing. Working capital finance can help enable them to fulfil their short‑term obligations, such as paying suppliers and employees, and ensures they can invest in growth opportunities. While tech companies understandably focus much of their energy on securing funding for innovation and expansion, banks also provide treasury management services that can be essential for scaling or ensuring a successful exit.

Fast‑growing digital companies face a range of operational and financial challenges as they grow. Managing payments, collections, and banking services across multiple markets and currencies can quickly become complex and time‑consuming as firms enter new markets, especially if they work with multiple local banks.

Efficient banking services help streamline operations and ensure effective cash flow management. They can help companies improve their working capital efficiency and therefore enhance many of the financial metrics that are key in a trade or private equity sale. Prospective external investors are also typically focused on issues relating to governance, transparency and accountability (including regulatory and compliance requirements), which are usually managed within treasury.

To build a credible treasury function with sufficient agility to support rapid growth, UK tech companies need a global bank, that understands the tech sector. Working closely with a global bank can help firms to develop long‑term financial strategies that address liquidity management, FX optimisation, and cost reduction through streamlined payment and collection systems. 

Citi Commercial Bank can help simplify global expansion for UK tech companies by offering a single platform to manage their accounts wherever they operate, with integrated FX and risk management solutions, and a wide range of financing options, from lending to investment banking products. Citi can support UK tech firms’ long‑term growth by offering advice on financial management and strategic planning that helps them anticipate challenges and optimise their financial operations.

As a global bank with digital expertise and on‑the‑ground insights about the UK market, Citi acts as a source of knowledge for the broader UK tech ecosystem and is a strong champion for its advancement both in the UK and globally.

Scott Brookman
UK Sales Director (Software) at Oracle NetSuite

 

In today’s global investment landscape, securing funding and attracting buyers for a growing business has become increasingly challenging. The right technology foundation can demonstrate a fundamental competitive advantage to potential investors. 

A business management system – or Enterprise Resource Planning (ERP), can help ensure that departments are working from one source of information— automate manual processes, and help become AI‑ready.

Here are four ways emerging businesses can leverage technology to prepare for the next step.

To be productive and do more with less
Changing economic circumstances and fluctuating interest rates continue to squeeze profit margins and create operating challenges. For many businesses, increasing efficiency and boosting the KPIs that demonstrate their productivity will be critical to success and valuable in the eyes of investors. Leaders can only manage what they can measure, and success will undoubtedly require management to know their numbers – from performance metrics to supply chain data – which will be the key to finding ways to do more with less. This relies on access to technology that gives visibility of real‑time data that provides a single view of the business.

To maximise the potential of AI
As the potential gains afforded by AI evolve, growing businesses must taper their enthusiasm to adopt or ‘bolt on’ AI at any cost. AI is only as good as the data it is trained on, highlighting the importance of having business information that is integrated and relevant across departments. By embedding AI in their ERP, businesses will be better placed to increase user productivity, reduce costs, harness the power of their own data, and improve overall efficiency. AI should be used to analyse and assist. By combining AI with finance and operational data, web analytics, lead‑generation data, and customer satisfaction metrics, businesses could uncover unique trends to unlock new insights, develop strategies to build their audience, and impress investors.

Know your company’s story and how to tell it
Effectively articulating everything from product roadmap to brand identity and growth objectives is key to investors. It’s not enough to simply have a good story. It is critical that the company’s leadership can tell a compelling narrative and back it up with data. That means having leaders and communicators who are adept at proactively conveying the brand. Company storytellers must be armed with financial performance, KPI information, and details about the target market. They need to tell the company narrative in a way that attracts customers and convinces investors that they are buying into something with growth potential.

Always expect and prepare for change
Staying agile – and being able to respond swiftly to market changes – should always be a top priority. Both long and short‑term business plans should incorporate some element of flexibility, working with finance, inventory, and supply chain data to stress test “what‑if” scenarios. For example, businesses can test scenarios such as the impact of raw material prices doubling or supply chain disruptions causing revenue delays. Then, ask questions such as how cash flow will be affected, what evasive maneuvers can be taken, and how risk can be lowered with preventative measures.

This, too, relies on real‑time, reliable data that provides a single view of the business. A strong technology foundation gives business leaders the visibility they need to respond quickly to a changing market, operate efficiently, and stand out.

Darren Upson
Vice President (Europe) at Tipalti

 

As businesses look ahead to 2025, finance leaders find themselves facing a crucial challenge: achieving the perfect balance between cost efficiency and sustainable growth.

For many companies, the ultimate goal is a successful exit, whether through an acquisition, sale, or IPO. Yet, achieving this requires more than just profitability. It demands a well‑crafted strategy that integrates streamlined operations, cutting‑edge technology, and a solid growth plan. In an unpredictable economic climate, the path to a profitable exit depends on agility, data‑driven insights, and innovative planning. Here’s how finance teams can strategically time their exit while ensuring long‑term profitability.

The growth vs. cost‑cutting balancing act
In the wake of economic turbulence over recent years, many businesses have shifted from purely defensive cost‑cutting measures to a more nuanced strategy, balancing cost control with investments that fuel growth. A recent report from Tipalti indicates that CFOs are highly focused on building more efficient financial processes while remaining open to market opportunities as they arise.

While cost‑cutting remains essential, finance leaders understand that a purely lean approach can be limiting without a growth framework. For instance, automation offers finance teams a way to streamline processes by eliminating time‑consuming manual tasks.

Driving agility through technology
Automation and digital solutions play an increasingly important role in making organisations both cost‑effective and agile. By integrating automation tools into accounts payable and other back‑office functions, finance leaders are reducing inefficiencies, minimising errors, and redirecting resources toward high‑impact areas.

Cutting‑edge technology such as AI and predictive analytics offers finance teams a competitive edge by enhancing data accuracy and providing actionable insights in real time. For example, AI‑driven systems can flag potential anomalies in financial data that might otherwise go unnoticed. By adopting these tools, finance leaders transform from purely operational roles into strategic partners, helping guide their organisations toward a well‑timed and profitable exit.

Market timing and exit strategy
Deciding when to execute an exit requires both a thorough understanding of market conditions and a stable financial base. In a volatile economy, identifying the right moment to exit can be challenging. However, with lean operations and access to real‑time data, finance teams can more accurately assess market readiness. Equipped with the right tools, companies can track financial metrics, gauge market conditions, and adjust their strategies as needed.

Finance teams must also be vigilant about regulatory changes and economic indicators, which can directly impact valuations and investor interest. 

A recent adjustment in the UK’s capital gains tax underscores this point, prompting many businesses to shift their focus toward long‑term resilience rather than short‑term profit.

Building for sustainable profitability
Finance leaders who prioritise agility empower their teams to adapt quickly to changing market conditions. A lean operational structure enhances flexibility, allowing companies to scale resources as needed without sacrificing financial discipline. This approach not only sustains profitability but also ensures the business remains attractive to investors and potential acquirers.

Exit planning with agility and foresight
Ultimately, a successful exit strategy in 2025 requires finance leaders to combine cost efficiency with a robust growth vision. As the economic landscape evolves, companies positioned to respond swiftly to market changes and equipped with streamlined operations will stand out as strong investment targets.

For companies planning an exit, 2025 is likely to demand more than traditional cost‑cutting tactics. It will call for a sustainable, forward‑looking approach that marries operational efficiency with strategic foresight. By investing in agile processes, fostering talent, and adopting technology, finance leaders can position their organisations to seize market opportunities, ensuring a profitable exit despite the complexities of today’s financial environment.

CEO survey results

We surveyed CEOs and other top executives from companies in the UK’s high‑growth technology sector about future growth plans, preferred methods of raising capital, and exit strategies.

About the Fast 50

 

The Fast 50 represents some of the most ambitious and rapidly growing technology companies in the UK.

Companies featured in the Fast 50 are ranked according to their revenue growth over a three‑year period. In addition, qualifying companies must fall into the category of being “technology‑enabled.” Technology‑enabled companies employ technology as a tool to enhance their business model. It can range from owning intellectual property to being heavily engaged in technological research and development. The following analysis discusses the data behind this year’s Fast 50, examining the top tech sub‑sectors for these companies, their geographical distribution, and investment trends.

 

Regional distribution
Industry focus and subsectors


While the Fast 50 companies represent just a fraction of the UK’s tech landscape, they provide key insight into sectors fuelling broader industry growth.

Sector ranking for the Fast 50 companies (2024)

Funding and support


Since 2019, 43 companies from this year’s Fast 50 have collectively secured £3.31b of equity investment via 191 deals.

Equity investment into Fast 50 companies (2019 - Q3 2024)

Top investors in the Fast 50 (2019 - H1 2024)

Gender


A striking 88.4% of Fast 50 companies have all-male founding teams, a pattern also reflected in the UK’s scaleups (businesses achieving an average of 20%  annual growth over three years) according to Beauhurst.

Gender composition of Fast 50 founding teams

Gender composition of 20% scaleup founding team

Employee and turnover metrics


This year’s Fast 50 reports a total turnover of £1.93b, more than double the figure from last year. Starling Bank, Zopa, ClearBank and Allica Bank collectively account for an impressive 90.4% of this total. However the median turnover of £9.6m still reflects strong revenue across the broader list of companies.

Starling Bank contributes to 41.3% of the total Fast 50 workforce. Most Fast 50 companies are considerably smaller, with a median headcount of just 36 employees.

£1.93b

total turnover

7,829

total employees

Starling Bank contributes to 41.3% of the total Fast 50 workforce. Most Fast 50 companies are considerably smaller, with a median headcount of just 36 employees.

Looking for the exit

Exploring the UK’s exit activity and ambitions, and the relationship between pre-money valuation, interest rates and inflation.

Emerging Growth Insights and the Fast 50 2023

Are the UK's tech companies globally competitive?

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