According to data from London & Partners by PitchBook, venture capital investment into the UK’s tech sector reached an all-time high in 2017 with UK firms raising £2.99 billion – almost double the total amount invested in 2016 (£1.63bn).
London’s tech sector continues to accelerate the growth of the UK’s digital economy, with the capital’s tech firms raising a record £2.45 billion and accounting for around 80% of all UK venture capital tech funding in 2017.
Some of the largest deals last year included:
– Improbable (£391m),
– Deliveroo (£364m) and
– Truphone (£255m).
The UK and London remain the favourite destination in Europe for tech investors. UK companies raised almost four times more funding in 2017 than Germany (£694m) and more than France, Ireland and Sweden combined.
London tech companies also raised significantly more venture capital investment than any other European city, including Amsterdam, Berlin and Paris.
Fintech was the leading sector for investment in 2017, with UK financial technology companies receiving £1.34 billion in VC funding. Major funding rounds were raised by:
– TransferWise (£211m),
– Funding Circle (£81.9m), and
– Monzo (£71m).
Artificial Intelligence (AI) companies also received high levels of funding. Big deals included:
– Babylon Health (£47.56m),
– Callsign (£26.92m) and
– Starship Technologies (£13.95m).
During last year, a number of the world’s leading tech companies pledge their long-term commitment to the capital, with significant investments from Amazon, Apple and Google. In the second half of last year, Spotify announced it will expand its R&D operation in London and double its headcount, while Facebook confirmed it will create an additional 800 jobs for its new London headquarters.