UK VC investment hits record $1.3bn in final quarter of 2015

Tech businesses accounted for two thirds of investments into UK and European deals October to December 2015...

Venture capital (VC) investment into UK companies reached a record breaking $1.3bn (£910m) in the final quarter of 2015, according to data from KPMG and CB Insights.

UK businesses secured a total of $4.75bn in 2015 from 400 deals with 113 of those deals in October to Decemebr, accounting for 43% of all European VC activity in the final quarter.

Two thirds of investments into European companies during this period were made into technology firms, including a $100m investment into Young Gun-founded restaurant delivery service Deliveroo led by DST Global and Greenoaks Capital.

The UK’s record VC numbers are in stark contrast to the global picture where there was a 30% drop in VC activity over the same period to $27.2bn – the lowest levels since early 2013.

Patrick Imbach, head of KPMG’s high tech growth team, said: “Investment in the UK’s burgeoning technology sector has increased over the course of 2015 to record levels.

“Not only is this is an indication of the sheer quality of investment opportunities in the UK, but also symptomatic of the fact that valuations here are still perceived to be moderate when compared to the valuations of their sector counterparts in the US and Asia.”

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