Can the UK develop tech firms valued at tens or even hundreds of billions of pounds? According to Poppy Gustafsson, the UK’s investment minister, the answer is yes. In a recent interview, she expressed, “It is inevitable,” while highlighting Britain’s potential as a hub for significant technological advancements.

Gustafsson emphasized the UK’s strengths, stating, “We’ve got some of the best universities in the world and some of the best talent in the world. The UK is a wonderful place to live and work; we’re able to retain that talent.” As a former CEO of cybersecurity firm Darktrace, she believes that as expertise in fields like AI grows in importance, remarkable technologies will emerge from the UK. She added, “It’s just a matter of time before they are valued in the tens of billions. I’m super optimistic. It’s a matter of when, not if.”

Before taking on her government role in October, Gustafsson oversaw the $5.3 billion sale of Darktrace, which is listed on the London Stock Exchange. Currently, Sage is the only tech company in the FTSE 100 with a market cap exceeding £10 billion. In 2016, chip designer ARM was purchased by SoftBank for £24.3 billion. Meanwhile, digital bank Revolut may be valued at over $45 billion if it goes public.

While such high valuations may be ambitious, Gustafsson acknowledges the challenges that lie ahead. Referring to critics of the government, she stated that achieving substantial valuations for UK tech companies will remain a challenge. “It’s supposed to be hard. Success on a global scale will never be straightforward,” she remarked. “We’re able to accomplish hard and difficult things, and the businesses on this list are doing just that every day.”

With an impressive tenure as Darktrace’s CEO, which included leading the company to its public debut in 2021, Gustafsson was asked if she would advise others to set up their tech companies in London rather than the US, where there are often higher valuations.

“I would 100 per cent recommend it to anyone considering it,” she replied. While acknowledging liquidity issues in London’s markets, she noted, “This scarcity also adds value. Many high-growth investors in the UK are eager to invest in these growth tech firms, and there are few options available.”

Among the potential IPO candidates this year, she mentioned CMR Surgical, particularly as she has a long history in Cambridge. After being appointed to her government position, Gustafsson also became Baroness Gustafsson of Chesterton. Another notable company, Yoto, which produces devices and an audio platform for children, caught her attention. “I own a Yoto … on behalf of my daughter, of course,” she quipped.

Last year was undoubtedly a whirlwind for Gustafsson. It included the sale of Darktrace and the personal loss of two former colleagues in a short timeframe. She paid tribute to both figures, celebrating their contributions to the tech sector and acknowledging the impact of these losses in her life.

After announcing her resignation from Darktrace, she was quickly appointed as the minister for investment by the prime minister, just days prior to a significant investment summit. “On my second day at work, we secured £63.5 billion in investments, which isn’t bad,” she joked as she took on the new role.

Gustafsson’s Office for Investment aims to facilitate significant overseas investments into the UK, assisting in economic growth. She believes the robust pool of entrepreneurial tech firms in the UK is a testament to the nation’s prowess. “I know from my role that the UK is thriving in technology,” she concluded. “It’s worth a trillion dollars and ranks as the third largest globally. We punch above our weight,” she added, referring to the impressive growth of UK tech companies as evidenced in the Sunday Times 100 Tech ranking.

For an in-depth look, explore interviews and company profiles from the Sunday Times 100 Tech.