UK tech industry saw record investment in 2017 despite Brexit uncertainty

Venture capital investment in British tech sector last year was almost double that of 2016

The UK tech sector saw a record amount of investment in 2017, despite the uncertainty over the affects Brexit could have on the nation's technology industry.

That's according to new data compiled for London & Partners by Pitchbook, which revealed that the UK is Europe's leading country for global tech investors, with "British tech firms attracting more venture capital funding than any other European country in 2017".

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The report establishes that venture capital investment into the UK's tech sector reached an all-time high in 2017, with UK firms attracting almost 3 billion (2.99bn), nearly double the total amount invested in 2016, which hit 1.63bn.

"London's tech sector continues to fuel the growth of the UK's digital economy, with the capital's tech firms raising a record 2.45 billion and accounting for around 80 per cent of all UK venture capital tech funding in 2017," explained the London & Partners report. "Some of the biggest deals last year included a 391m Series B investment into Improbable, Deliveroo (364m) and Truphone (255m)."

The data also shows that the UK and London in particularly are the favourite destinations in Europe for tech investors, with UK firms attracting almost four times more funding in 2017 than Germany (694m) and more than France, Ireland and Sweden combined.

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The data also established that London tech companies raised more venture capital investment than any other European city, including Amsterdam, Berlin and Paris.

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In all of the types of companies in the UK tech sector, fintech was apparently the leader for investment last year, with UK financial technology firms attracting a record 1.34 billion in venture capital funding, accounting for over 90 per cent of all money raised by UK fintech firms last year. Major funding rounds for financial technology companies such as TransferWise (211m), Funding Circle (81.9m) and Monzo (71m) facilitated this.

Mayor of London, Sadiq Khan, commented: "Today's record investment figures are further proof that London is the undisputed tech capital of Europe and I am committed to ensuring we take over from Silicon Valley as the world's leading tech hub.

"Technology entrepreneurs and businesses are attracted to our great city for its diverse talent pool and unique business ecosystem and I am determined that London remains open to investment and the best tech talent from all over the world."

Of course, with Brexit negotiations still underway, time will tell if leaving the EU will have a pronounced affect on the UK's technology sector further down the line. 

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