2016 sees 40% jump in UK tech sector investment
Despite Brexit, UK tech sector sees 4,009 deals worth £6.7bn completed in 2016, with a record 2,546 in the first half of the year
Despite the political uncertainty surrounding Brexit in 2016, investor appetite for the UK technology sector wasn’t dampened with a 40% increase on 2015, according to research from Sonovate.
£6.7bn was invested in UK tech businesses last year across 4,009 private equity and venture capital deals, with a record 2,546 completed in the first six months of 2015, prior to the European referendum.
Of the 50 biggest tech deals of the year, London saw the lion’s share of investment (68%), with financial technology (fintech) enjoying the biggest share of funding by sector (24%).
Health technology was second (20%), followed by the cloud (8%), e-commerce and telecommunications (both 6%) and hardware, marketplace, mobile, on-demand and energy (all 4%).
Despite being ‘hot’ sectors, artificial intelligence, automotive, big data, cyber security, banking, logistics and sensor and software technology accounted for just 2% of the 50 biggest deals each.
Metro Bank, which raised over £447m ahead of a stock market flotation, secured more investment than any other start-up, followed by Deliveroo – which closed a $275m Series E – and AvantCredit (£127m).
Research from London & Partners earlier this month found that the UK tech sector attracted more investment than any other European tech sector in 2016.