Investment in UK tech firms climbs despite Brexit
UK still tech hub of Europe with “record” investment
The UK is still managing to attract investment in tech companies despite the looming threat of Brexit.
According to figures released by London & Partners, the Mayor of London's promotional agency, VCs have invested more than 1.1 billion into London's tech sector over the last six months with the total invested across the UK as a whole reaching 1.3 billion between January and June.
The organisation said that the beginning of 2017 has seen over four times the amount of investment than at the same stage during 2013 and more than any other six-month time period in the last decade.
London also managed to attract more investment than any other European city since the Brexit vote, including Dublin, Paris and Amsterdam. London has received more than double the amount of investment than Berlin, the second largest city for VC investment.
Among the deals noted by London & Partners were virtual reality start-up Improbable (388m) and London-based fintech companies Funding Circle (82m), Zopa (32m) and Monzo (22m).
London & Partners said that the UK's tech sector has also seen a record level of investment over the first six months of 2017, with more investment than the first half of any other year. According to the data, London companies accounted for over eighty per cent of the total 1.3 billion invested in UK tech companies since the beginning of January.
It also said that private equity investment into the tech sector has also been good. London tech companies have received 4.5 billion worth of investment across 34 deals, significantly more than the previous five years. Likewise, UK tech firms have seen a record six-month period, with a total of 5.3 billion of private equity funding since the beginning of 2017 more than the total amounts raised in the same period in 2016 (4.2 billion) and 2015 (1.7billion).
"The Brexit vote has understandably created some uncertainty but it is no surprise to see that London continues to attract more than double the amount of investment than any other European city," said London & Partners chief executive Laura Citron.
"The fundamental strengths of London as a centre for technology and business have not changed and we have everything companies need to be successful: policy makers, finance, infrastructure, world-class universities and talent," she said.