Digital Growth Grant evaluation 2023 to 2024 and 2024 to 2025
An independent evaluation of the Digital Growth Grant, awarded to Barclays Eagle Labs (for financial years 2023 to 2024 and 2024 to 2025), aimed at supporting the growth of UK tech startups and scaleups.
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This research was carried out by Frontier Economics for the Department for Science, Innovation and Technology (DSIT) to assess the process, impact, and Value for Money (VfM) of the Digital Growth Grant (DGG).
DGG was a time limited grant awarded to Barclays Eagle Labs (BEL) between the years 2023 to 2024 and 2024 to 2025 to deliver specialised support programmes for tech businesses. The £11,694,000 fund aimed to support 16,000 digital startups and scaleups across the UK, particularly outside of London.
The evaluation found evidence that DGG activities had a positive impact on their participants. Accelerator programmes in the DGG had a measurable positive impact on employment growth, contributing a 6% uplift, suggesting a benefit of £1.86 in economic value per £1 invested.
It is also important to note that while the evaluation was being conducted, some activities in Financial Year 2 (FY2) were still ongoing. As a result, the evaluation primarily focused on evidence from Financial Year 1 (FY1). Some analysis may therefore only represent the lower bound of the full economic value created, and longer term impacts are not included.
The DGG achieved diversity and regional targets, with 52% to 71% of participants identifying with at least one underrepresented group (compared to a target of 35%). 80% of business interventions were provided for participants based outside of London, with two-thirds of the estimated employment growth impact located outside of London.
The evaluation also provides recommendations to HMG for the deployment of future interventions aimed at supporting local tech ecosystems, noting the impact of programmes which offer tailored content for specific stages, founder characteristics, or geographies. We are taking on board these recommendations as we continue to develop policies and interventions to support startups and scaleups.