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London and UK top European tech investment tables

23 January 2019

The UK and London continue to dominate the European tech investment landscape, with latest figures revealing Britain’s tech sector attracted more venture capital investment and tech IPOs than any other European hub in 2018.

The UK and London continue to dominate the European tech investment landscape, with latest figures revealing Britain’s tech sector attracted more venture capital investment and tech IPOs than any other European hub in 2018.

According to end of year investment data published by London & Partners and PitchBook, London’s tech companies provided a major boost to UK investment in 2018, with the capital’s firms receiving £1.8 billion (72 per cent) of the total £2.49 billion raised by British tech firms1.

The research also shows that London-based tech businesses are benefitting from access to almost double the amount of growth capital than other European cities such as Paris, Berlin and Stockholm.

Long-term growth prospects for London’s digital economy are strong, with further analysis of the findings revealing that international investors are increasingly backing companies from some of the city’s fastest growing sectors. British companies developing innovations in areas such as Big Data, Artificial Intelligence (AI) and Blockchain have seen record levels of funding in 2018 and more investment than other European hubs.

Deputy Mayor for Business, Rajesh Agrawal, said: “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.”

Venture capital funding into technology companies across major European cities in 2018:

City

Total Funding in 2018 (£)

London

£1.8bn

Berlin

£936.53m

Paris

£797.04m

Stockholm

£224.23m

Barcelona

£182.74m

Amsterdam

£163.51m

Zurich

£156.97m

Copenhagen

£111.37m

Dublin

£104.13m

Cambridge

£97.2m

 

Investment into the UK’s AI companies peaked at £736 million in 2018, representing a 47 per cent increase on the £499m raised in 2017.This year’s figures were boosted by a number of larger deals including a £58.86m Series B round for London-based online travel firm, Culture Trip, which uses AI to tailor content to its users and a £153m Series D round for AI chipmaker Graphcore, helping it to become the UK’s most recent unicorn.

Funding into businesses developing Cryptocurrency and Blockchain technologies also saw record growth in 2018, with UK firms receiving over £200m in VC funding compared with the amounts raised in 2017 (£19.11m) and 2016 (£51.96m). Major deals included a £61 million later stage funding round for Blockchain software firm, Bitfury, and a £12 million Series A round for London-based, TradeIX.

The UK’s booming fintech sector also continues to be a major draw for venture capital investors, with London-based companies raising over £1.08 billion (over 90 per cent) of the total £1.17 billion received by UK fintech firms last year. Following renewed investment, several London-based fintech companies reached unicorn status in 2018 – this includes a £177m funding round for Revolut and a £84m Series E funding round for Monzo.  

In 2019, ExCeL will host over 30 technology-focused events, welcoming over 400,000 professionals in the sector. This will include corporate events for globally recognised brands such as Adobe, Salesforce, Oracle and the largest Google Cloud event in Europe, Google Cloud NEXT, as well as exhibitions including Bett, BVE, Big Data World, Marketing Technology Expo and TechXLR8.