New tech firms incorporating jumps to record high – Daily Business

Scotland has seen a record number of technology companies incorporating, as businesses adapt to a world of uncertainty, according to new data.

Analysis from audit, tax and consulting firm RSM UK found 507 tech companies were incorporated in Scotland in Q2, jumping 15% from 442 in the same period last year.

The number of tech incorporations also rose by 25% quarter-on-quarter from 405 in Q1 2025.

All UK regions were up on last year, with nine out of 12 recording the highest number of new tech incorporations since 2019.

Head of technology for RSM in Scotland, Will Simpson, said: “This surprising jump in new tech incorporations to a record high suggests that, despite numerous headwinds, tech entrepreneurs and business leaders in Scotland have realised uncertainty may be the new norm, therefore they need to invest and innovate through the headwinds.

“Scotland is emerging as a potential leader in data science and AI, with our world class universities creating innovators in computing and data science, engineering, cyber and AI.

“Long standing challenges remain however, with many early-stage promising businesses struggling to scale domestically and globally, largely due to the lack of funding fire power needed to onboard a team with the capability to drive commercial scale.

“The innovation and potential coming from Scotland’s startups is incredible, and the tech sector in the country could be a significant driver of growth, if the ecosystem can crack the long-standing scaling conundrum.”

Ben Bilsland, partner and head of technology industry at RSM UK, cautioned about further growth without greater clarity from the government.

“Increasing pressure on the UK government to address gaps in the budget will leave the tech industry feeling nervous about what tax measures might be introduced,” he said.

“Changes to capital gains tax will make business founders and investors cautious, with a direct impact on investment and exit decisions.

“Any changes around the research and development scheme would likely send shockwaves through the tech industry, stifling innovation and growth.”

Number of new technology company incorporations – year-on-year comparison