IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more

UK tech sector beats China for VC investment with £12.4bn so far in 2022

The digital sector continues to thrive in the UK despite a global market slow down

The UK's technology sector has raised $16 billion (£12.4bn) of venture capital funding so far in 2022, already more than the whole of 2020 (£12bn).

Globally it puts the UK ahead of China which has only seen $12.9 billion (£10.5bn) since the start of the year, according to figures from Dealroom released ahead of London Tech Week. 

The United States still dominates when it comes to technology investment, with $124 billion (£101.3bn) raised in the first five months of the year. However, the UK has enjoyed record-breaking funding pulling in £9 billion in just the first quarter (up from £6.3bn in the same period of 2021), ahead of both India and China and more than double what was raised by the nearest European country, France. 

London continues to be the most lucrative location for tech investment with £8.6 billion going to the UK's capital alone. That's more than double raised in Paris (£3.9bn) and over four times more than Berlin (£1.9bn). Fintech was also the country's strongest sector, investment-wise, with £6.2 billion raised by startups. 

The US appears to be a keen investor in the UK's tech scene, with an increase in funding in 2022. A total of £6.1 billion has come from America, which is already more than what came from the country in the whole of 2020. Asian investment has also climbed with £2.3 billion coming from various sources across the continent. 

Related Resource

Death of the tick mark

How to prevent internal audit becoming obsolete

Whitepaper cover with image of a hand holding a pen over a tick listFree Download

"Despite the wider global challenges that have led to a slow down in public markets, private tech investment in the UK is continuing to grow," Yoram Wijngaarde, founder and CEO at Dealroom, said. 

"The UK has cemented its reputation as one of the best places to invest in fintech, with more fintech investment going into the country in the first part of this year compared to even the Bay Area. Nearly everything will be affected by the downturn we've entered into, but overall the UK tech sector is in a strong position than it's ever been before in terms of breadth and depth of the entire ecosystem."

Featured Resources

Accelerating AI modernisation with data infrastructure

Generate business value from your AI initiatives

Free Download

Recommendations for managing AI risks

Integrate your external AI tool findings into your broader security programs

Free Download

Modernise your legacy databases in the cloud

An introduction to cloud databases

Free Download

Powering through to innovation

IT agility drive digital transformation

Free Download

Most Popular

Salaries for the least popular programming languages surge as much as 44%
Development

Salaries for the least popular programming languages surge as much as 44%

23 Jun 2022
The UK's best cities for tech workers in 2022
Business strategy

The UK's best cities for tech workers in 2022

24 Jun 2022
LockBit 2.0 ransomware disguised as PDFs distributed in email attacks
Security

LockBit 2.0 ransomware disguised as PDFs distributed in email attacks

27 Jun 2022