UK tech investment accounts for a third of the £ 76bn invested in Europe

Power up: £ 26bn has been raised this year by UK tech versus £ 50bn for the rest of Europe

Investments in UK technology have accounted for more than a third of the £ 76 billion invested in European technology this year.

This year £ 26bn has been invested in UK tech, 2.3 times more than last year’s figure of £ 11.5bn – 35% of all money invested in tech across Europe, according to the government Digital Economy Council.

The £ 26 billion raised by British start-ups and scale-ups was almost double the figure raised in Germany (£ 13.5 billion) and more than triple that raised by French companies (8, £ 6 billion), said Trading Room, who compiled the numbers.

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Twenty-nine new unicorns (companies valued at over $ 1 billion) were started this year in Britain, including the Depop e-commerce platform, Motorway car sales platform and challenger bank Starling. Bank. This brings the total number of UK unicorns to 116, meaning a quarter of UK unicorns were created in 2021 alone.

The UK has more unicorns than France (31) and Germany (56) combined.

The majority of money going into UK tech comes from the US, with 38.2% of all funding coming from states, mostly to fintech and healthcare companies, compared to 28% of venture capital funding. from UK. US venture capital funds that opened offices in the UK included General Catalyst, Lightspeed Ventures and the Silicon Valley fund Sequoia.

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That said, UK venture capital has had a record year, raising £ 7 billion with record fundraising for Index Ventures, Balderton Capital, 83North and Eight Road Ventures.

Data from Dealroom and job site Adzuna also estimated Cambridge to be the most important city for technology investment outside of London, followed by Manchester.

Digital Minister Chris Philp told the The telegraph of the day that there was now a need for longer-term UK investors, such as pension fund managers, to consider investing in early stage companies or venture capital funds.

Mr Philp told the newspaper: “Pension funds are grossly under-allocated to pre-IPO technology. There is a huge opportunity there for UK pension funds to invest in UK venture capital. “

Further reading on technology investment

European technology investment exceeds $ 100 billion mark for the first time

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