More than 1,000 UK startups ‘collapsed’ due to COVID-19

Cars and cyclists pass through the Silicon Roundabout area, a technology cluster of high-tech companies located in Shoreditch and St. Lukes in East London. (Credit: Mike Kemp/Getty Images)
Cars and cyclists pass through the Silicon Roundabout area, a technology cluster of high-tech companies located in Shoreditch and St. Lukes in East London. Photo: Mike Kemp/Getty Images

More than 1,000 of the UK’s high-growth businesses have filed for administration, liquidation or dissolution since lockdown began, according to new research released today by Plexal and Beauhurst.

During this period, September brought a record number of filings — the highest monthly figure in 10 years – as the full impact of COVID-19 started to be revealed. 273 fast-growth companies filed for administration, liquidation or dissolution in that month alone, out of a total of 1,067 since the beginning of lockdown. That’s a 181% month-on-month increase compared with August.

While government schemes provided “valuable support to cash-strapped early stage companies struggling from the COVID-19 crisis,” said the researchers, “the sharp rise in startup deaths highlights the fading preservative effect of government support

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