Tech Nation is to close down at the end of March after the government withdrew its funding and handed the £12m to Barclays.
The start-up network, which has operations across the country, will close for good on March 31.
Tech Nation was set up by the coalition government in 2010 and employs around 100 people.
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Among the businesses it has helped are Monzo Bank, Revolut, Bloom & Wild, Just Eat Ocado, Skyscanner and Deliveroo.
A DCMS spokesperson said: "We have supported Tech Nation since 2017 to accelerate the growth of start-ups and scaleups across the UK.
"Our decision to make the Digital Growth Grant competitive brings the funding into line with the majority of government grants. Barclays Eagle Labs was successful because their application represented the best value for taxpayers’ money, will benefit the most startups and scale-ups over the next two years, and was scored highest by an independent panel.
"We are committed to supporting Tech Nation until March 2023."
A Tech Nation statement said: "After a decade as a government-backed organisation serving the UK scaleup tech ecosystem, we are today announcing that Tech Nation will be closing its doors from 31st March 2023.
"Tech Nation’s core grant funding from DCMS is being awarded to Barclays Bank.
"With this foundation removed, Tech Nation’s remaining activities are not viable on a standalone basis.
"When Tech Nation was founded the UK’s tech economy was burgeoning.
"Tech Nation’s growth programs, digital academy, networking conferences, international expansion programs, sandboxes, panels and in-depth sector research, analysis and reports have helped shape the trajectory and success of UK tech; the no.1 digital economy in Europe and no.3 globally, valued at $1trn (16x in 10 years), employing 5m people (from 2m in the decade) across the country, with over 20 places in the UK home to one tech unicorn or more (5x in 10 years).
"While 80% of start-ups fail within their first 2-5 years, over 95% of start-ups on Tech Nation’s accelerator programs have gone on to scale.
"More than a third of all tech unicorns and decacorns created in the UK have graduated from a Tech Nation program, collectively raising over £28bn so far in venture capital and capital markets.
"Our alumni includes the biggest names in UK tech - Monzo Bank, Revolut, Depop, Bloom & Wild, Zilch, Just Eat Takeaway.com, Darktrace, Marshmallow, Ocado Retail Ltd, Skyscanner, Peak AI and Deliveroo, to name just a few of the 5,000+ businesses we’ve supported.
"As a government-backed national asset, Tech Nation has delivered one of the best ROIs for the taxpayer, delivering £15 return on every £1 funded by the UK Government.
"Tech Nation ends this impactful chapter with pride in everything it has accomplished, in awe of the incredible individuals and businesses we have been privileged to champion, and in gratitude to everyone who has been part of our journey.
"Thank you to the thousands of tech founders who have been part of or who have supported our cohorts, to our sponsors for backing us, and to the tech and scaleup ecosystem partners, regional players and industry bodies who we have worked alongside to fuel UK tech’s strength and resilience.
"Most of all, we want to thank our people who have served the tech ecosystem with such commitment, enthusiasm and talent. The success we have achieved for UK tech is thanks to you all.
"Looking to the next decade of UK tech the Government has announced ambitions to be a Science and Technology Superpower. It hopes to take on Silicon Valley, and to become the most innovative country in the world.
"But for the first time in decades, macroeconomic trends threaten Britain’s tech momentum. It is vital that Government rhetoric is now paired with policies and support mechanisms to match.
"We hope that the incredible growth, progress and momentum we have driven over the past decade at the nexus of the UK scaleup ecosystem can be maintained and capitalised on."
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