U.K.’s capital still remains at the forefront of Europe’s technology investment sector, as evidenced by the continuously rising number of London-based venture capital (VC) firms and tech IPOs, according to London & Partners and PitchBook’s year-end investment data released January 8.
Based on new investment figures, British tech firms have so far generated over £2.49 billion last year, marginally less than the £3.12 billion raised in 2017. As it stands, London accounts for roughly 72 percent of the sector’s growth, with tech companies raising as much as £1.8 billion in 2018, down from the £2.53 billion amassed the year prior.
Among the sectors that performed notably well in U.K.’s tech landscape last year were blockchain and crypto firms, as it sees record growth in 2018, raising well over $200 million in VC funding, a sharp spike compared to its previously raised £19.11 million in 2017 and £51.96 million in 2016. Among the previous deals that also particularly stood out included Bitfury’s private placement funding round worth £61 million, and Tradeix’s £12 million Series A round.
While 2017 has experienced a marked plunge in total venture capital investment, data proves that both London and the U.K. still dominates Europe’s market for tech startups in 2018.
Of the three leading European territories by total venture capital funding invested in tech startups, U.K. still remains at the top with £2.49 billion, trailed by Germany with £1.38 billion, with France taking the third spot at £1.03 billion. Across European capitals, similar figures can also be observed, with London dominating all other cities with £1.8 billion, while Berlin follows at £936.53 million, and Paris at £797.04 million.
Highlighting the capital’s massive potential as a world-leading tech hub, Deputy Mayor for business Rajesh Agrawal underscored:
“These figures demonstrate that London is going from strength to strength as a global hub for technology, innovation and creativity. The fantastic success of our tech sector is rooted in our city’s openness and our diverse, international talent pool. Regardless of the outcome of Brexit, London will remain open to innovation, talent and investment from all over the world.”