The UK has received more funding than any other European tech hub in the two years since the Brexit vote, new figures show.
Despite worries than leaving the EU could dampen the UK’s position as a leading tech hub, British tech companies attracted almost three times more venture capital investment than any other European country, according to research from London & Partners.
The figures also show that since June 2016, UK tech companies have received over £5bn in VC funding – more than France (£1.55bn), Germany (£2.15bn) and Sweden (£644m) combined.
Still, over 80% of all venture capital money invested into the UK since the EU referendum vote went straight to London, making it the top city for VC funding. The capital attracted over £4bn of investment – ahead of Paris (£1.14bn), Berlin (£814m) and Stockholm (£542m).
FinTech was the most popular sector for investment in London, securing £1.7bn of the total. This was contributed to through mega-rounds including TransferWise’s £211m, Monzo’s £71m and Revolut’s £177m Series C.
AI, cybersecurity and E-commerce also attracted a fair bit of attentiom. Investors injected over £400m of venture capital money into London AI companies over the past two years, including major deals for Starship Technologies (£13m) and Realeyes (£12m). Cybersecurity received £168.37m, followed by £79.53m raised for the same sector in Paris. E-commerce attracted a massive £1.21bn, followed far behind by Paris (£252.37m).
The Mayor of London Sadiq Khan commented: “London is the undisputed tech capital of Europe and today’s figures offer further proof that London remains a leading global tech hub for investors. With world-class universities and a diverse international talent pool, London is a centre for creative energy and innovation.
“London’s tech sector is an important source of jobs and growth for the city’s economy and it is vital that we continue to ensure that we can attract the very best talent and investment from all over the world in the aftermath of Brexit,” he added.
Since the beginning of the year, UK tech companies have raised more venture capital investment than any other European tech hub. Over £874m in VC funding has been raised in 2018, with major deals including £71m for London-based fintech company eToro and £25m investment into Redwood Technologies Group.
Angel investor Sherry Coutu CBE added: “With a high number of scale-ups and high growth companies, it is no surprise to see that London and the UK continues to be a leading destination for international tech investors.”
“From Artificial Intelligence to cyber security, EdTech and GovTech, the UK is home to companies that are leading the way in developing and implementing the latest cutting-edge technologies. This year’s London Tech Week will shine spotlight on London’s mix of thriving start-up and scale-up businesses and a whole range of innovations. It’s a fantastic opportunity for London to showcase itself to global investors, entrepreneurs and tech leaders from across the world.”
Finally, the United States was the largest source of overseas investment into UK tech in the past 18 years investing over £3.5 billion into UK tech firms since June 2016 – that’s two times more than any other European country.