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Britain’s tech sector clocks up £2.5bn of new investment in 2018

Britain’s tech sector clocks up £2.5billion worth of new investment in 2018 as it comfortably tops the table of European countries

  • Britain’s tech sector saw more investment than Germany and France combined 
  • A surge in funding for fintech, AI and blockchain companies was recorded
  • Britain also saw 17 tech IPOs, ahead of Sweden with 10 and France with eight

Britain’s technology sector saw more venture capital investment and stock market flotations in 2018 than other European countries by a big distance, new figures have shown.

UK based tech companies attracted £2.49billion in venture capital investment last year, according to data compiled by London & Partners and PitchBook.

This comfortably topped Germany in second place with £1.38billion and more than doubled third place France’s £1.03billion.

A large number of tech firms have congregated nearby London’s ‘Silicon Roundabout’

According to the research the high level of incoming investment is being driven by a surge in funding for tech sectors such as fintech (financial technology), AI (artificial intelligence), blockchain and cryptocurrency.

The data shows investment into the UK’s AI sector peaked at £736million in 2018, up a chunky 47 per cent on 2017.

Firms developing blockchain technology also saw record growth, securing more than £200million in funding, up from just £19.11million in 2017.

The figures also showed £1.8billion (72 per cent) of the total cash raised in 2018 flowed into London, which is by far the biggest UK hub for tech firms.

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 researchers also tallied up the number of tech sector IPOs carried out in various European countries with the UK the chart topper again.

Funding Circle's IPO was one of 17 new tech listings in the UK last year

Funding Circle’s IPO was one of 17 new tech listings in the UK last year

The likes of business lender Funding Circle and online fashion marketplace Farfetch saw the country stroll into first place for new tech listings with a total for 17 for the year.

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

Laura Citron, chief executive of London & Partners commented: ‘2018 was another great year for investment into London’s tech sector.’

‘With high levels of investment for growth sectors such as artificial intelligence, fintech and big data, our research shows that London is producing game-changing companies and ideas to change the world.’