Member Article

Tech investment in London soars at record rate

London’s technology sector attracted more venture capital financing during Q1 2015 than in any previous quarter.

The figures, which are compiled by London & Partners, the Mayor’s promotional company for London, show that the city’s technology companies secured over $682m in VC financing during the first three months of the year - more than ever before and up 66% on Q1 2014.

The amount raised by London companies comprises 80% of that raised by all UK companies in the quarter ($856.7m).

During the period, significant investments into London were made by some of the most well-known global venture capital funds, including Silicon Valley firm Andreessen Horowitz investing in online payments company TransferWise ($58m) and virtual worlds creator Improbable ($20m).

Eileen Burbidge, London technology ambassador and Partner at Passion Capital, which invests in technology startups, said: “This quarter is the most exciting yet in London’s tech development, as we have seen companies based in the capital attract substantial new investments from some of the world’s most tech-savvy and influential investors.

“London is one of the most electrifying tech hubs in the world, with companies and investors all brought here by the city’s ideas and entrepreneurial spirit, as well as its talent and access to markets.”

WorldRemit, a London-based company that enables online money transfers, raised the most funding in the period, securing a $100m round led by Technology Crossover Ventures.

Ismail Ahmed, founder and CEO of WorldRemit, said: “London is the ideal place to start a fintech company, as it is a technology hub as well as a financial services hub.

“There is an abundance of world-class talent in the city, and the convenient time zone, which enables communication with Asia and the Americas in same working day, is an attractive factor for us as an international money transfer service.”

Gerard Grech, CEO of Tech City UK, said: “2015 looks set for the record books as the UK earns its position as a global tech leader. It’s been a great year for London tech companies with the likes of WorldRemit, Farfetch, JustPark,TransferWise and Shazam smashing through their funding targets. The increase in venture capital investment into London in the first quarter of 2015 comes as no surprise. With 44,000 working in the fintech space alone and record levels of investment in 2014, the capital is the engine of Tech Nation.”

This was posted in Bdaily's Members' News section by Ellen Forster .