UK tech sector leads Europe despite Brexit

The UK attracted more venture capital investment to its technology sector since the referendum vote than Germany, France and the Netherlands combined, according to new data from London & Partners.

 

Thursday 6

 

UK tech sector leads Europe despite Brexit

It reveals that British tech companies recorded £2.4bn of investment during that time, and £1.3bn between January and June – more than in any other six-month time period over the last decade.

 

London accounted for over 80% of the total invested since January, receiving more than double the amount attracted by its closest European competitor, Berlin.

 

“This year’s record investment levels show that London’s tech sector continues to thrive and remains open to investment from all over the world,” London & Partners CEO, Laura Citron, said.

 

“The Brexit vote has understandably created some uncertainty but the fundamental strengths of London as a centre for technology and business have not changed.

 

“We have everything companies need to be successful: policy makers, finance, infrastructure, world-class universities and talent.”

 

The unprecedented levels of investment were largely due to a series of mega deals involving London-based fintech companies Funding Circle, Zopa, and Monzo, as well as virtual reality start-up Improbable.

 

London tech firms also received £4.5bn in private equity investment across 34 deals in the first half of this year, while the UK as a whole attracted £5.3bn.

 

There was a slowdown in mergers and acquisitions (M&A) involving UK tech companies compared with record levels seen last year, however, there was still £35bn of investment raised across 452 deals.

 

This was significantly more than the deal volume and amounts accumulated through M&A activity in Germany (£8.6bn) and France (£4bn), according to additional analysis by London & Partners.

 

“London provides access to the UK’s tremendous tech talent, and is also an attractive place to work for the global talent vital to growing a tech business,” Improbable CEO, Herman Narula said.

 

“For a technology business looking to raise growth capital and scale, investment can come from anywhere in the world, but London is a great place to be located.”

 

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