The UK’s tech sector is leading the way globally in emerging trends, including FinTech and AI. Information compiled by data company PitchBook and released earlier this year by London & Partners
The Mayor of London’s promotional agency, revealed that in 2017, London-based tech companies received £2.45bn in funding from venture capital organisations, which accounted for almost 80% of the £2.99bn invested in Britain. These figures indicate both the importance of the tech sector in the UK and the degree to which the sector features in London.
The data also showed that London-based tech businesses had more investment than those in Berlin, Paris and other tech sectors in Europe combined, growth in AI was particularly strong, with investments in this portion of the tech sector doubling from 2016 to £488m last year.
From strength to strength
Figures collected by data provider Beauhurst for UK law firm Penningtons Manches LLP also revealed the strength of Britain’s tech sector. This report revealed that there had been significant investments from the US into UK-based tech companies, with investments increasing last year to £1.08bn from only £213m in 2011.
The report also found that the number of mergers and acquisitions in the tech sector had also experienced major growth, increasing to 74 in 2017 from 21 in 2011.
Commenting on the report, Martin Sherwood of EIP said “It’s wonderful news that the UK seems to be hanging onto its unassailable position as European tech hotspot. Our fund managers have been involved in many start-ups, some of which are already being valued at spectacular multiples – Onfido and BioEpic are just two examples.”
UK commitment to Tech sector
The Mayor of London, Sadiq Khan hailed the data revealed in the Pennington Manches report. He said that investment figures in the tech sector provided additional proof that London is “the tech capital of Europe” and that he is committed to having London surpass Silicon Valley as the leading tech centre in the world.
Khan noted that the city’s “diverse talent pool and unique business ecosystem” is a magnet for tech businesses and entrepreneurs and added that he is “determined” that London will continue to attract the world’s best tech talent.
According to the London Stock Exchange Group, the UK is home to 58,000 tech companies, and the tech sector is a driving force for change and innovation throughout the economy.
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