Friday 12 June 2026 12:36 pm
Prime Minister Keir Starmer announced a £1.1bn AI hardware package
London Tech Week has been accused of masking some of the biggest structural problems facing Britain’s tech sector and of offering “complacency in conference form”.Adam French, partner at global venture capital firm Antler, said the flagship event highlighted a widening gap between the public narrative around UK tech and the realities facing founders trying to build and scale businesses.French argued politicians and industry leaders spent the week highlighting investment announcements, AI infrastructure plans and headline-grabbing funding figures, while paying too little attention to the challenges preventing more startups becoming global technology companies.“We have spent ten years lamenting the sale of DeepMind to Google, instead of thinking about how we will build the next Deepmind,” he told City AM.Ministers have recently doubled down on their efforts to position technology and AI at the centre of the UK’s growth strategy.During London Tech Week, Prime Minister Keir Starmer announced a £1.1bn AI hardware package, including support for British chipmakers and a new national supercomputer in Edinburgh, while technology secretary Liz Kendall pledged reforms designed to channel more pension fund capital into UK growth companies.Funding and talent remain sticking pointsDespite Britain retaining its position as Europe’s largest technology ecosystem, French argued two longstanding problems continue to hold back the sector: a negative domestic narrative around technology and a failure to address barriers to scaling.The criticism lands as fresh data continues to highlight weaknesses in the startup pipeline. Research from Antler analysing more than 40,000 UK funding rounds found only around 12 per cent of startups progress from seed stage to a Series A raise.French also pointed to immigration and skills challenges, arguing Britain is losing out to European rivals in the race for top talent. “Visa routes are too expensive, too complicated and too slow,” he said.Those concerns echo warnings from advisers and industry groups, with data obtained by RSM UK earlier this year showing applications from skilled international technology workers fell sharply during 2025, and analysts warning labour shortages risk constraining growth and innovation.The government has sought to respond by unveiling a new concierge-style support service for scale-ups and a visa reimbursement scheme for high-growth firms in technology, life sciences and clean energy.French acknowledged the UK retains significant advantages, including London’s concentration of financial capital, scientific research and entrepreneurial talent. But, he warned policymakers cannot rely on historic successes or unicorn league tables to remain competitive.“The ingredients for something great are here,” he said. “The next generation of great British companies will be built by those people – if we create the conditions for it.”The comments add to a growing debate over whether Britain’s technology sector needs a more interventionist approach from government, as ministers look to prevent promising firms following the path of Arm and DeepMind by seeking capital, acquisitions or listings overseas.Read Adam French’s full article.
