A Surge in Tech Investment
A recent report prepared by Tech Nation and Dealroom.co has revealed that the technology sector in the United Kingdom may be about to have the best investment year to date. According to the report, there is potential for as much as $11 billion dollars in investment by the last quarter of 2019 – a steep increase from 2018’s $8.7 billion. The report was compiled for the Digital Economy Council of the British government.
The surge of investments made by foreign companies into technology firms based in the UK has thus far brought $6.7 billion into the country of which over half can be attributed to investments coming from Asia and the United States. Should the current trajectory continue, it is clear that the technology sector in the UK is on track for the most lucrative year it’s ever had with data projects worth billions streaming in.
Where the Money Is Going
Investors from the United States and Asia have thus far jointly invested $3.7 billion, a total of around 55% of the total investments made this year thus far. Out of this notable sum, approximately $3.2 billion went to nine companies. Greensill, a supply-chain finance firm received an investment of $800 million, Deliveroo, a London-based online food delivery company received $575 million and $230 million was allocated to Checkout.com, a fintech company.
It’s Not Just Foreign Investment
Although this influx of foreign investment is welcome in the UK, around 37% of technology investments are from local sources and it remains one of the top domestically funded European countries. Only the Netherlands and France outdoes the UK. According to Eileen Burbidge from Tech Nation, this is a growing testament to the entrepreneurial talent and the dynamic ecosystem in the UK.