When thinking tech hub, our minds automatically go to Silicon Valley, but it seems as though the UK is heading towards getting its fair share of the limelight.
The UK has witnessed a skyrocket in funding for tech start-up’s, despite the concern surrounding Brexit with progression regarding UK based companies.
“The increased Venture Capital investment into the UK, despite Brexit, is a reflection of the high quality of the individual investment opportunities in its tech ecosystem,” enthused Ivan Draganov, Research Analyst at Dealroom.co.
According to research carried out by Dealroom, there was in increase of 43% in Venture Capital Investments in UK start-up’s between January to July 2018 and the said months in 2019, from $4.7 billion to $6.7 billion respectively.
Since 2013, UK start-up’s have raised more from US and Asian investors than most of Europe combined, showing this surge is looking fruitful for the UK.
The study revealed that several start-up’s including Deliveroo and Monzo, are getting their share of the rise to fame in the UK tech start-up scene, thanks to vast investment coming mainly from the US and Asia.
“I think it’s incredible that international investors are committed to supporting UK tech startups. It is an industry than will only continue growing, as there is so much potential to be tapped into,” says Charlotte Phelps from UK tech start-up and casino comparison website, LabSlots.
Let’s take a closer look at start-up’s who raised paramount venture capital investment, reaching a new benchmark.
Founded by Stephen Fitzpatrick in 2009, OVO Energy has set out on a mission to make energy cheaper, greener and simpler, with the belief that energy has the power to solve some of the world’s biggest and most pressing problems.
Investors seem to have the same vision, funding OVO Energy with €240 million to reach their goals.
Monzo, the hottest digital-only online banking platform, was founded in 2015 by tech team Jason Bates, Tom Blomfield, Paul Rippon, Jonas Huckestein and Gary Dolman.
Formerly known as Mondo, and dubbed as ‘the bank of the future’, Monzo has changed the way users interact and use banking systems, and has been trusted and backed up by €390 million of funding.
London-based Greensill provides short-term loans to companies to help with their operational needs, working with a vast range of global companies. Founders Jason Austin and Lex Greensill set out on a mission to unlock capital so the world can put it to work, and have received €955 million in funding to exceed their goals.
Headquartered in London and founded in 2012 by William Shu, Deliveroo delivers premium restaurant meals, straight to customers’ door. With a vision to offer reliable delivery whereby the customer can track it all from their smartphone, Deliveroo is skyrocketing thanks to a total investment funding of €1.3billion.
Aiming to provide an accessible and affordable health service, Babylon Health received a total funding of €577 million.
Founded in 2013 by Ali Parsa, the company has existing operations in the UK and Rwanda, with plans in the pipeline to collaborate with major providers in China, the US and the Middle East.
Boasting a large team of scientists, clinicians, mathematicians and engineers, Babylon offers an app whereby users can consult a doctor 24/7 and receive prescriptions to their smartphone, with an easy-to-use application.
With a funding of a staggering €783 million, UK-based fintech company OakNorth Bank offers debt finance solutions to entrepreneurs and growth businesses in the UK. Established in 2013 by Rishi Khosla and Joel Perlman, the effortless platform offers mortgages for high net worth individuals, SME business owners and clients with atypical income streams.
A positive surge in global investors
It appears the UK is becoming one of the hottest tech start-up hubs in the world. Driven by investment rounds of more than €200 million and dominating other European countries, there is a plethora of opportunities available to be tapped into surrounding the UK tech start-up scene.
Draganov believes that the UK start-up ecosystem is producing several category leaders that have been created over the past years, including in big categories like Fintech, Health, and AI, he says:
“These category winners have already reached enough scale that they are able to withstand the political upheaval. It will be important to see whether today’s new start-ups are able to scale even better in the current environment, with the same access to talent and capital.”