London's Tech Ecosystem Flourishes
June 11, 2018
UK continues to be the leading European destination for international
tech investors, with British tech companies attracting almost three
times more venture capital investment than any other European country
over the past two years.
According to figures from London & Partners, published ahead of London
Tech Week, London's tech firms are contributing to the growth of the
nation’s digital economy, accounting for over 80% of all venture capital
money invested into the UK since the EU referendum vote.
The research reveals that since June 2016, UK tech companies have
received over £5 billion in VC funding – more than France (£1.55bn),
Germany (£2.15bn) and Sweden (£644m) combined.
London’s high concentration of world class tech companies and talent has
helped it to remain Europe’s number one destination city for VC funding,
with its tech firms attracting over £4 billion of investment – ahead of
Paris (£1.14bn), Berlin (£814m) and Stockholm (£542m).
Global tech investors are drawn to London for its strengths in
developing the latest cutting-edge technologies, with the UK capital
topping the European investment charts for funding into fast growing
sectors such as Artificial Intelligence, cyber security and Fintech.
London’s booming fintech sector has attracted over £1.7 billion in
funding since June 2016, with major deals for TransferWise (£211m),
Monzo (£71m) and a recent £177m Series C funding round for Revolut,
making it the UK’s latest unicorn company valued at over $1 billion.
With some of the world’s top universities and graduates, London is
leading the way in the development of AI technologies, seeing global
investors inject 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).
Next week (June 11-17th) London will showcase the very best of its tech
offering by opening its doors to the international business community
for London Tech Week 2018, Europe’s largest festival of technology and
innovation. The city will host over 200 events and welcome over 50,000
entrepreneurs, investors and tech leaders from all over the world.
The Mayor of London Sadiq Khan said: “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.”
Sherry Coutu CBE, London Tech Week ambassador and angel investor 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.”
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
analysis of the findings shows that the United States is the leading
source of venture capital funding into the UK with American based VCs
pumping over £3.5 billion into UK tech firms since June 2016. The UK
remains the leading European hub for US tech investors since the Brexit
vote, with German (£1.67 billion) and French (£807m) tech companies
receiving less than half the amount of funding seen in the UK.
Separate research released earlier this year by Stack Overflow, the
world’s largest developer community, shows that London is a hot bed for
tech talent and is home to more software developers than any other
European city, with over 250,000 workers across the capital2. Based on
analysis of Stack Overflow’s 50 million monthly users, London is the top
European hub for professional developers, followed by Paris, Madrid and