A Tech Boom the UK Cannot Afford to Miss
The UK is faced with a stark, yet familiar question: will it capture value from this next great technological wave, or sit back and watch it accrue elsewhere?
The UK has been here before: British scientists helped shape the early internet through world-class research, only to capture a fraction of the value. The companies that defined the digital age scaled elsewhere, and with them went economic upside and influence. Now we’re witnessing AI advance at exponential speed in both the US and China, with the UK left behind, after promising companies like DeepMind were acquired by international buyers. Quantum is the next great opportunity, and one the UK cannot afford to miss.
Serendipity Capital was founded in anticipation of these era-defining advancements and the need for technological sovereignty, investing in deep tech fields such as quantum and AI. We have long recognised the strength of the UK’s research ecosystem. We were one of the first backers of Cambridge Quantum Computing, which went on to become the global leader in quantum, Quantinuum. But the UK still lacks the machinery that can transform bright sparks into enduring and commercially attractive entities, too often letting fledgling ventures falter, rather than ascend into globally renowned behemoths.
If the UK wants to retain more of the next generation of champions, and come out on top of the quantum revolution, there must be a sharper focus on execution.
First, talent: a step change in engineering capacity and a far more aggressive approach to attracting global talent.
Second, scale-up capital: patient, later-stage funding that allows companies to stay, grow and win from the UK
Third, creating sustainable revenue: revenue is the best form of capital for growth companies. We need clear incentives and structures to ensure that growing companies can secure sustainable revenue from major corporates and the Government. Underpinning revenue by providing contracts to growing quantum companies will give them the best chance to compete globally.
The UK Government’s recent £2billion commitment to position the UK as a global quantum leader was a welcome signal, and its role as an early customer matters. But without the right frameworks, capital will continue to flow elsewhere, and ultimately, companies will follow.
If the UK cannot scale these capabilities, the prize will not be lost so much as quietly claimed by others. In an increasingly hostile world, both our national and economic security demand that we must ascertain and maintain the unique value that quantum promises.
Quantum has already proven that it will shape the UK’s future economic strength, security and sovereignty. Failing to invest in its foundations now would be a strategic mistake. Countries that do build the capability will set the direction, and others will simply depend on them.
The UK still has a window. But without decisive action and a clear pathway to align research, talent, and capital, it will repeat past mistakes. This time, it must get it right.
