UK tech start-ups remain most attractive investment option for Silicon Valley

Data from London & Partners has revealed the UK has bagged more 'West Coast investment' than any other European country

The UK tech start-up scene remains the number one European investment destination for Silicon Valley backers despite concerns over Brexit, according to a new report from London & Partners.

Its independent investment data has revealed that UK tech businesses raise more VC funding from West Coast investors than any other European country -including more than France, Germany and Ireland combined.

Over a period of five years (2012-2017), UK tech companies attracted over $2.94bn worth investment– followed by Sweden ($1.5bn), France ($836m), Germany ($762.8m).

Despite economic and political uncertainty caused in part by Brexit, British businesses have raised a record $1.13bn in 2017 already – double the amount raised in the whole of 2015 and 2016.

When broken down by city, London remains both the European and British tech capital – with 90% of all Silicon Valley investments going to London-based businesses.

Between 2012 and 2017, London tech firms were able to bag $2.5bn worth of VC funding, while Stockholm ($1.4bn), Berlin ($641m) and Paris ($500m) were the next most popular cities for Silicon Valley investors.

London’s thriving VC market has been boosted by the number of unicorn companies based in the capital, with separate research from investment firm GP Bullhound recently revealing that London is home to more unicorns than any other European city.

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One third (17) of all European unicorns have been founded in London, more than Stockholm (7), Berlin (5) and Paris (3) combined.

Recent London companies to join this year’s list include Startups 100-ranked Deliveroo and Purple Bricks.

Sherry Coutu CBE, co-founder of SVC2UK and serial entrepreneur, said:

“With some of best global talent and a strong culture of entrepreneurship, the UK and Silicon Valley are two of the world’s leading places to start and scale a technology business.

“While London has grown to become Europe’s largest tech hub, we still have a way to go to emulate the success of Silicon Valley and there is a lot we can learn from each other.”

“It is no surprise to see that British tech firms continue to attract more venture capital investment from the Bay area than any other European country and the figures released today suggest that Brexit has not had an impact.

“London will continue to be a diverse, outward looking city and we look forward to welcoming our friends from the Valley to encourage greater collaboration between the two centres.”

Manish Madhvani, CEO and founder of GP Bullhound added:

“London’s digital economy has demonstrated unprecedented levels of talent, ambition, and investment, delivering an exceptional cohort of billion-dollar businesses.

“These pioneers have been critical to the rise of European tech and will drive the industry forward to create companies of scale to rival the US and Asia.”