LONDON (Reuters) – London was the highest metropolis in Europe for expertise funding final 12 months, with extra funding going into firms within the British capital than into companies primarily based in Paris, Berlin and the subsequent seven cities mixed, information confirmed on Friday.
Tech companies in London attracted 2.45 billion kilos in enterprise capital funding in 2017, about 80 % of the two.99 billion kilos invested in Britain as an entire, in keeping with information compiled by funding database PitchBook for London & Partners.
Eileen Burbidge, associate at Passion Capital, stated it was no shock to see London – and Britain – main the pack as a result of it has each the expertise and investor capital wanted.
“It’s a testament to our exceptional entrepreneurs that the UK tech sector continues to produce companies that are leading in the development of cutting edge technologies such as artificial intelligence and fintech,” she stated.
Fintech, or monetary expertise, was the preferred section for traders, attracting a file 1.34 billion kilos in enterprise capital, the info confirmed, led by main rounds for TransferWise, Funding Circle and Monzo.
Artificial intelligence (AI) was one other progress space, with UK-based AI companies elevating 488 million kilos, double the quantity a 12 months earlier, the info confirmed.
Other large offers final 12 months included a 391 million pound funding into Improbable, whose software program creates large-scale simulations within the cloud; 364 million kilos for meals supply company Deliveroo; and 255 million kilos for cell phone agency Truphone.
Burbidge stated the most important risk to Britain’s management was any restrictions in its capacity to draw one of the best expertise after the nation leaves the European Union subsequent 12 months.
“Access to talent is critically important,” she stated.
“Being able to attract EU talent has been a huge advantage for the UK in the last few years. For the UK to look like a welcoming place is really important.”
Index Ventures associate Jan Hammer additionally stated any post-Brexit restrictions on EU residents motion could be detrimental.
“Protecting the talent inflow is the key source of growth of start ups,” he stated.
At the second, nonetheless, London was setting the usual each in breadth and high quality of start-ups, he stated, noting that the town was home to function fashions corresponding to Just Eat (JE.L), King, a gaming company acquired by Activision Blizzard for $5.9 billion in 2015, and TransferWise.
“In our portfolio roughly 50 companies of the 150 companies we have are headquartered in London, and there are about another 25 foreign companies that have set up in London,” he stated.
($1 = zero.7388 kilos)
Reporting by Paul Sandle Editing by Jeremy Gaunt.