US investments in London's tech sector soar to $795m

 
Oliver Smith
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Johnson: “London is clearly the place to create fast-growing tech companies” (Source: Getty)
Mayor Boris Johnson will reveal how US investors poured a record $795.2m (£521.7m) into the London technology sector last year, while speaking as part of a trade mission in New York this afternoon.

The mayor will also reveal that one of the capital’s rising FinTech stars, Digital Shadows, has closed an $8m funding round led by US firm Storm Ventures to fund the cyber security firm’s growth in the US.

“The market for cyber security services in the US is huge currently and businesses face exactly the same challenges as they do in the UK,” Digital Shadows chief executive Alastair Paterson told City A.M.

“We are already working with multinational clients from London but the two new offices will enable us to service them better and win new business in the US.”

Johnson will reveal that London’s tech sector overall raised $1.4bn in venture capital funding last year, based on figures from CB Insights and London & Partners, meaning over half of the funds raised came from US investors.

“As the digital capital of Europe, London is clearly the place to create fast-growing tech companies, and our flourishing tech sector has caught the eye of US investors,” said Johnson.

In recent weeks alone London’s money transfer service TransferWise and song identifier app Shazam have both reached $1bn valuations, raising $58m and $30m respectively.

“London is doing a lot to retain its title as the global leader in FinTech innovation, we’re trying to create a favourable environment for investors to invest in FinTech and for companies to see our capital as a good place to do business,” Claire Cockerton boss of FinTech trade body Innovate Finance told City A.M. “Both the FCA and the Payment Systems Regulator have made great strides as regulators in reforming their approach to new innovative companies.”

Joining the mayor on his trip to the US this week are a host of British startups from the London FinTech sector including Innovate Finance members Azimo, Elliptic, Essentia Analytics and Zopa.

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