Transatlantic venture capital firm Index Ventures has raised $3.1bn in new funds and directly invested $1bn in UK startups to create 5000 British jobs in the next year.
Index’s latest cash injection comes just a year after Index raised its last set of $2bn funds.
The UK is Index’s single largest destination for investments in Europe, and the new capital comes as the government presses ahead with proposals to reform listing rules with the aim of attract more tech companies and high-growth businesses to IPO on the London stock market.
The VC firm said it expected its British investment to create 5000 new jobs in the next 12 months, capitalising on the UK’s tech talent.
It’s been the most active year for Index since its inception, including three big London floats from its portfolio companies Deliveroo, Trustpilot and Wise.
These were met with varying success. Deliveroo’s much-anticipated IPO in Spring was labelled a “car crash” after its valuation dropped by more than a quarter on the first day of trading.
But then earlier this month, fintech giant Wise’s London IPO provided a major boost to the capital’s tech scene as its valuation hit £8bn after listing.
Other UK- headquartered companies backed by Index include Farfetch, Just Eat, King, Bloom & Wild.
Chancellor Rishi Sunak welcomed Index’s investment “to support the entrepreneurs who are shaping the future of our economy.”
“All this highlights the importance of having a thriving financial ecosystem in the UK.
“That’s why I’ve set out a roadmap for an even more open, innovative and competitive financial services sector that will help more people to launch and grow their business in the UK,” Sunak added.
Index partner Mike Volpi said the new funds would be predominantly focused on consumer, enterprise, software infrastructure, gaming and fintech companies.
During the pandemic, forced digitisation “opened up a whole new set of opportunities,” said Index partner Jan Hammer.
“It’s also accelerated the trend of technology underpinning every sector. The essence of entrepreneurship is positivity— trying to overcome obstacles and turning them into opportunities.
“We’ve seen that across the board, both within our own portfolio as well as externally in newly-born companies, and those that have started scaling during the pandemic.”