Tech sec­tor sees more ven­ture cap­i­tal in­vest­ment

Yorkshire Post - Business - - BUSINESS / NEWS -

Britain’s tech sec­tor saw more ven­ture cap­i­tal in­vest­ment and stock mar­ket flota­tions in 2018 than any other Eu­ro­pean coun­try, as the likes of Monzo and Fund­ing Cir­cle took cen­tre stage.

UK tech com­pa­nies at­tracted £2.49bn in ven­ture cap­i­tal in­vest­ment last year – far more than Ger­many in se­cond place with £1.38bn and France in third place with £1.03bn, ac­cord­ing to data from Lon­don & Part­ners and Pitch­Book. High pro­file ini­tial pub­lic of­fer­ings (IPOs) from the likes of on­line fash­ion firm Far­fetch and peer-to-peer lender Fund­ing Cir­cle also en­sured Britain took the crown for the most tech list­ings, at 17 through­out 2018.

Swe­den was se­cond with 10 tech IPOs, fol­lowed by France with eight and Ger­many with six.

The UK’s high in­vest­ment lev­els are be­ing driven by a surge in fund­ing for emerg­ing tech sec­tors such as Fin­tech, ar­ti­fi­cial in­tel­li­gence (AI), cryp­tocur­rency and blockchain, ac­cord­ing to the re­search.

It found there was record in­vest­ment in UK com­pa­nies de­vel­op­ing in­no­va­tions in these ar­eas last year.

The fig­ures also showed Lon­don was by far the UK hub for in­vest­ment, ac­count­ing for £1.8bn or 72 per cent of the coun­try’s ven­ture cap­i­tal raised in 2018.

Tech busi­nesses based in the cap­i­tal are ben­e­fit­ting from ac­cess to al­most dou­ble the amount of growth cap­i­tal than other Eu­ro­pean ci­ties, the re­search found.

The data shows in­vest­ment into the UK’s AI sec­tor peaked at £736m in 2018, up 47 per cent on the pre­vi­ous year.

Firms de­vel­op­ing cryp­tocur­rency and blockchain tech­nol­ogy also saw record growth, se­cur­ing more than £200m in ven­ture cap­i­tal fund­ing, up from £19.11m in 2017.

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