Why tech start-ups are so promising as an investment opportunity? British environment explained


Thinking about creating your own tech startup as the next step of your career? Here is some information on the UK digital market in which you might be operating.

For entrepreneurs, the current economic environment isn’t the most inviting. In spite of this, digital start-ups are springing up at an astonishing rate. This article will take a look at the reasons for this explosion in tech ventures and how BITOTEK can help you bring your innovative business ideas to reality.

Why is tech such a promising sector for start ups?

The recent vote in favour of the Brexit was an unwelcome shock to much of the business community in Britain and the EU. For the last couple of years, the British economy has been growing reasonably strongly as people put the financial crisis behind them and started to invest. The uncertainty created by the Brexit vote has shaken the confidence of the business community, leading them to postpone investment decisions. As a result, economists have downgraded the UK’s growth forecasts for 2017 and 2018.

In this kind of environment, it would be understandable if people with ideas for ventures decided that they’d rather wait until the outlook for the UK economy looks more stable and positive before taking the plunge. In light of this, the UK government has been investing heavily to make sure that innovative new businesses do get off the ground.

In his Autumn Statement, the Chancellor of the Exchequer announced that an additional £400 million would be made available via the British Business Bank to tech start ups. This comes in addition to a variety of different private and public sources of funding for new tech businesses. Tech start ups are also a popular target for angel investors. BITOTEK can help young promising start ups to access advice on how to attract private and public funding.

Finally, companies in the tech sector often have a certain amount of insulation from local economic shocks such as the Brexit vote. This is due to the fact that businesses that operate online have easy access to a global market.

A world of opportunities

Part of the reason for the focus on the tech sector from the government and the private sector is that the number of people who use the internet and make purchases online grows with each passing year. Take up of internet-connected smartphones is also growing rapidly. This creates a growing worldwide appetite for apps and new online solutions. By harnessing the latest technologies and analysing trends in the IT market, BITOTEK can help newly founded tech companies gain a competitive advantage over both fellow start ups and established giants. If a new solution becomes widely known as being superior to existing approaches, then it can achieve rapid take up, with the company that developed it quickly growing into a multi-million pound business.

An example of a recent London-based start up that has successfully attracted investment funding is Grabble. This app is marketed as “Tinder for fashion” and was able to easily raise £1.85 million from angel investors in 2015. Grabble has since attracted coverage in various national newspapers and awards for being one of the country’s most promising new companies.

Even more impressively, student.com has expanded from its beginnings as a small website that recommended student accommodation to become a global leader. In doing so, it attracted $60 million of funding from a variety of sources including the founders of Spotify. $110 million of bookings were made on the site during 2015.

Could your start up be next?

There are still millions of untapped opportunities that are waiting to be found and exploited by people who are sufficiently creative and determined. At the same time, it must be recognised that there is a high chance that any new start up will fail. Some estimates place the failure rate as high as 90%.

There are a number of key reasons why tech start ups fail. The most frequently cited one is that the concept the company developed wasn’t sufficiently demanded by the public. Other popular reasons for failure are that the company ran out of cash before they started making money or that the IT development team that was assembled was inappropriate to build and grow the company.

BITOTEK helps avoid all of these problems by acting as your business partner and sharing your risk burden. We supply web, app and enterprise IT developments to start up companies that make it easier to create an effective product and bring it to market. We can also advise on marketing your product and can help start ups to raise finance in order to put their plans into action.

For companies that require assistance with developing their idea into an effective, profitable solution, BITOTEK offer access to the latest development techniques and up to the minute analysis of market trends. We can ensure that your concept is fully realised in a cost-efficient, timely fashion. We can also provide additional IT-related advice and support to help fill gaps in the expertise of your team.

BITOTEK has worked with a wide variety of start ups. This has given us unique insight into the environment in which tech companies operate. We can help clients with their strategic decision making and ensure that they are approaching their target audience in the most effective manner. We also help to analyse your competitors to ensure that everything that we do is adequate to ensure that your business meets the needs of the market.

Legal, tax and financial planning are aspects of doing business that are often overlooked by new companies. This can have costly consequences. As well as government fines, liabilities can end up being owed to customers and clients if aspects of your business’s financial structure and reporting do not meet the letter of the law. BITOTEK can advise on common legal and financial matters relating to tech start ups.

Among the extensive network of businesses that we have helped are numerous investors who are interested in tech start ups. If we think that your project is sufficiently promising, then we can provide assistance with putting together the funding that you need to get off the ground.


Even with all of the help that Bitotek can provide, hard work and determination will be required from any team that hopes to build a successful start up. If you think that your idea has a chance of success and you are ready to commit to making it a reality, then get in touch today for a chat about how we can provide the assistance you need.

BITOTEK offers:
  • IT developments for apps, web and corporate systems
  • Full warranty and annual maintenance for all projects
  • Legal and financial support
    Help getting funded
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