UK tech firms secure record amount of foreign investment

Marco Green
August 21, 2019

Overall, the sector has raised more money in the first seven months of the year than it did in the entirety of 2018.

New research released on Wednesday shows that UK-based technology firms have received $6.7bn in funding thus far in 2019, with 55% coming from investors based in either the USA or Asia.

Commenting on the latest figures, Digital Secretary Nicky Morgan said: "All the signs indicate 2019 will be another great year for the UK's tech sector, which is on course to exceed $11bn worth of investment before the end of the year".

Figures released yesterday by DCMS showed that the "computer programming, consultancy and related activities" sector was the largest exporter in the United Kingdom and behind £9.1bn worth of services delivered to the EU.

Both regions pumped in a total of $3.7bn (£3.02bn) in the first seven months of the year, compared with a total $2.9bn invested across 2018.

"We have a long-standing reputation for innovation and the statistics endorse our reputation as one of the best places in the world to start and grow a digital business".

"I've seen a lot more requests from United Kingdom start-ups tapping Asian markets capital financing in comparison to a year ago", said Aditya Mathur, founder and managing director of Singapore based venture capital fund

Meanwhile, the U.S. trade war with China is also making the United Kingdom an attractive proposition.

Funding came mostly from the States itself and Asia and was funnelled into investments in so-called unicorn companies that valued at over $1.0bn each, such as a renewable energy company Ovo Energy and takeaway business Deliveroo, according to the new research conducted by Tech Nation and Dealroom.

"The UK provides an attractive opportunity for funds looking to grow their investments".

The council noted that the mix of funding sources not only proved that the United Kingdom had a tech sector that was attractive to a wide range or investors and investment types, but also offered "stability".

In May, Japan's Softbank bought an $800m stake in Britain's Greensill, which provides short term loans to companies to help with their operational needs.

"As we leave the European Union and expand our trading relations around the globe, the growing interest from two of the world's biggest and most important technology markets is one more reason we should be optimistic about our future", she said.

"We need a transition plan for companies who need to know what to do about staffing after October 31".

Mr Shaw has said one of the ways the United Kingdom could mitigate these risks is by making the immigration process for overseas workers easier and more welcoming in the future.

Other reports by Click Lancashire

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