London tech firms are attracting record breaking investment as global investors look to make the most of the UK’s growing economy and capitalise on the capitals booming technology sector.
Figures published by London & Partners, the Mayor’s promotional company for London, show that technology firms in the capital have attracted more than $1 billion in investment so far in 2014 which is almost 30% higher than the full previous year record of f $719 million raised during 2013 and almost ten times that of what was raised in 2010. The $1.021 billion raised by London tech firms brings to the fore the ultimate success of tech initiatives that have been put in place in London in order to encourage this sort of investment including Tech City and London Technology Week.
The Mayor of London Boris Johnson said “These figures show, without any question, that this is an incredible period for technology firms in our city. Tech is blossoming and our reputation for innovation and discovery, allied with outstanding talent, is attracting record breaking levels of investment from around the globe.”
This larger growth in investment has also coincided with a growth in technology companies within the capital as there are now 3 4,000 digital technology firms in London with that number expected to rise to 45,000 in the next decade. This will also see job creation of around 46,000 new jobs which is only likely to create further economic activity of around £12billion according to recent research by Oxford Economics.
Investment within tech firms in the capital has ranged from the small to the mighty with three companies so far this year completing funding rounds in excess of $50 million. The largest deal completed during the third quarter was a $65 million series D funding round by Funding Circle, the peer-to-peer lending network, in a deal led by Index Ventures with participation from existing investors, Accel Partners, Union Square Ventures and Ribbit Capital.
Samir Desai, Co-founder and CEO of Funding Circle said: “Since we launched Funding Circle in 2010 we have secured $123 million of venture capital funding in London – starting with our first $1 million seed funding in 2010, right up to our latest $65 million round in July. This support has allowed us to build the world’s leading marketplace for business loans. In the UK, more than 5,500 small businesses have accessed over £370 million, and at the end of 2013 we took our marketplace model to the US, to help fill the small business funding gap which also exists there. The latest round will help us to consolidate our growth even more, and allow us to explore further international markets.”
New funds worth more than $1.5billion have been created within the capital in order to spur on existing technology firms and encourage creation and growth within the sector.
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