UK technology startups received a record amount of funding in the first six months of the year, according to figures from London & Partners.
Between January and June, the sector managed to attract almost £900m in venture capital investment, which compares to a comparatively small £640m raised during the equivalent period last year. In 2013, investment for the full year was lower than either of these figures.
The increase, according to the research, is largely the result of the Tech City initiative launched by Prime Minister David Cameron and London Mayor Boris Johnson five years ago. Now, venture capital investment is 10 times greater than it was in 2010 and technology has become the economy's fastest growing sector.
Eileen Burbidge, the Mayor of London’s tech ambassador for the city, said:
Last year it took London tech firms 9 months to reach the billion dollar mark, this year they’ve done it in six months. The city has become such a tech powerhouse because it excels over other tech hubs around the world. London combines the technology and digital innovation of Silicon Valley with the Wall Street financing heritage of New York and the policy making of Washington DC – all in one phenomenal city.
Focus on London FinTech
Out of all the venture capital investment going to tech firms in Britain, London receives a huge 80 per cent. In fact, the number of companies in London’s digital technology sector has grown by 46 per cent since the launch of the Tech City programme.
And much of this comes down to the capital's FinTech success – firms such as Funding Circle, Azimo, WorldRemit and Currency Cloud accounted for around 40 per cent of London's total investment at the start of 2015.
Frans van Eersel, CEO of DoPay said: “Access to this kind of early-stage funding is crucial for companies like us. The money will allow us to push ahead with our growth across Egypt and expand into new markets across West Africa.”
Gordon Innes, head of London & Partners, said:
London is rapidly becoming the most exciting city in the world for tech. Innovative entrepreneurs across the capital continue to produce exciting new companies which are attracting the eye of the world’s investment community.