Start-up VC funding jumps to $834m after consecutive quarterly declines
Tech start-ups in London made-up the vast majority (59) of the 110 VC deals across the UK for the third quarter of 2016...
Venture capital (VC) funding into UK technology start-ups topped $834m across 110 deals from July to September 2016, according to the Venture Pulse Report Q3 2016: Global Analysis of Venture Funding report.
London saw the lion’s share of deals with 59 VC investments totalling $580m, followed by Cambridge with nine deals worth $69.6m.
In Europe, the number of deals increased for the second consecutive quarter while the amount of funding dollars decreased – equating to $2.3bn across 468 deals.
The figure marks a return to health after a year that saw VC investment decline in every consecutive quarter since the Q4 2015. The report noted that the EU referendum is likely to have played a part in this earlier decline with funding falling 43% in Q2 2016 on the previous quarter to $549m.
Despite the decline in value of the pound since the Brexit vote, the report has encouraged international VC firms to seize the opportunity to up their investments in UK start-ups:
“For start-up companies that operate in a dynamic and rapidly changing environment, this means Brexit is not likely to be a top concern at the moment.
“However, a number of VC investors are beginning to evaluate Brexit impacts on a case-by-case basis, while others are looking for companies to address any implications from Brexit in their pitch decks.”