UK tech receives record-breaking investment

New data from Tech Nation shows that the UK’s tech sector received record-breaking investment in the first half of 2019.

The new Data Commons for UK Tech, in collaboration with Dealroom, shows that UK startups received $4.8 billion (£3.8 billion) in venture capital (VC) funding in the first six months of this year.

The resource, launched ahead of London Tech Week and containing information on individual technology businesses, founders, investors, VC funds, angels, accelerators, universities and service providers to the sector, aims to provide a holistic view of the UK’s rapidly evolving innovation economy and will provide UK entrepreneurs, investors and policy makers with “a rich new open data source to inform their decisions”.

Findings from the first report show that London startups received the most investment, with $3.2 billion in VC funding since January, breaking its own previous record set in 2017 of £2.6 billion. Bristol lies in second place, raising $291 million, followed by Cambridge at $142 million and Oxford at $114 million.

The most notable fundraising rounds in the first half of the year are:

– Greensill and Oaknorth – $800 million from Japanese investor Softbank

– Deliveroo – $575 million led by Amazon

Note: Adding to this, and not included in Tech Nations report, is London fintech startup Worldremit which this week announced it has raised $175 million in a series D funding round led by TCV, Accel and Leapfrog Investments. 

Across the board, fintech was the biggest winner, more than tripling its previous record to achieve $2.3 billion in VC funding so far this year, up from $1 billion in 2017.

Digital Secretary Jeremy Wright called the Data Commons for UK Tech initiative “timely” and said it had the potential to trigger a new series of investment into the UK’s tech sector, creating jobs and prosperity across the UK. 

George Windsor, Head of Insights at Tech Nation, adds: “This open database will help all of us to build a true picture of the UK’s fast growing tech sector, to spot opportunities, make smart connections, reduce costs and drive innovation.”

With London being well positioned as a global capital for finance, fintech, and a major hub of fourth industrial revolution technologies, it remains an attractive place to do business.

At Beavis Morgan, we work with a number of entrepreneurs and startups, helping them set up and run their businesses, while navigating the challenges and advising them on making the right decisions both now and for the future.
We also understand that, whether you’re a start-up or a well-established business, cash is king and managing its flow is crucial to your immediate and long-term success. That’s why our independent finance brokerage, BM Structured Finance, is readily available to assist startups source the right funding for their individual needs.
Research & Development (R&D) tax relief has also proved to be a major boost to British tech businesses and, with Brexit looming, it is more important than ever that companies seek ways to unlock cash from innovation to help fund research and development into the ongoing enhancement of existing products and services.
Does your business undertake research and development? If so, speak to us today to set the benefits in motion. Our proven methodology offers a painless approach towards obtaining R&D tax relief. 
For more information about how we can help you and your entrepreneurial business, contact Steve Govey, Partner within our Beavis Morgan Entrepreneur Support Team, Simon Belton at BM Structured Finance or your usual Beavis Morgan Partner.