Tech boom: London firms raise $1bn and break venture capital funding record
New figures show that London’s tech firms are bringing unprecedented levels of venture capital.
London has always been the UK’s investment hub, attracting the eyes of businesses and individuals from around the world who want a slice of the city’s promising high-growth industries.
Finance continues to be one of the capital’s strengths, but one of the newer sectors to attract that level of interest is technology. Recent figures show just how important tech is to London’s present and future.
Data from London & Partners, the promotional company run from the Mayor of London’s office, shows that the capital’s tech firms are attracting record levels of investment.
In fact, a grand total of $1.021 billion in venture capital has been injected into the industry so far this year. That’s a dramatic increase of 30 per cent from the venture capital invested during the whole of 2013, which stood at just $719 million.
Compared to the whole of 2010, venture capital raised by London tech companies has actually risen tenfold – a figure which Eileen Burbidge, partner at tech investor Passion Capital, describes as “astonishing”.
Officials in the capital have worked to emphasise the huge promise of the tech sector and the benefits of investing in London companies.
According to London & Partners, the impact of initiatives such as London Technology Week and Tech City is visible in the data.
“These figures show, without any question, that this is an incredible period for technology firms in our city,” says Mayor of London Boris Johnson. “Tech is blossoming and our reputation for innovation and discovery, allied with outstanding talent, is attracting record breaking levels of investment from around the globe.”
At the same time, London’s reputation as a finance and innovation centre is being recognised by more and more new venture capital funds.
The likes of Google’s new venture capital arm and Index Ventures have both set up shop in the capital, while Santander and Balderton Capital have established new investment vehicles there.
Overall, that means that new venture capital funds worth more than $1.5 billion have been established in the capital so far this year. London’s reputation just keeps growing.