UK-based “impact” startups that are making a difference in the world of food, energy, and health raised more than £2 billion in 2021, the latest figures have revealed.

“Impact” companies are those founded to build solutions to the United Nations’ Sustainable Development Goals.

According to the figures, British startups tackling global problems attracted a record £2 billion in investment in the last 12 months – up from £1.7 billion the previous year.

It means impact investment has increased by 127 per cent in the UK since 2018, with firms in this space now worth a combined £50 billion and employing over 35,000 people.

The data – published by Dealroom for the Digital Economy Council – also shows that the UK is now home to 12 impact ‘unicorns’ – defined as firms with a market cap of $1 billion (£750 million) or more in value. Just six of these companies (Arrival, Octopus Energy, Babylon, Compass Pathways, Depop, Tractable) are based in London.

The report suggests that these firms will be joined by 22 impact “futurecorns” (high-growth companies that are on track to reach unicorn status) in the near future.

Commenting on the figures, Digital Secretary Nadine Dorries said: “From world-class AI discovering new treatments for Covid-19 to green energy solutions paving the way to a net-zero future, UK tech is transforming the world for the better.

“We want to harness the power of technology to make greener, healthier and safer choices and today I’m hosting the first Future Tech Forum in London to discuss how we can make that happen through future governance, policy and cooperation.”

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