Member Article

London tech firms dominate VC funding in 2015

London-based technology companies raises a record $2.28bn in 2015, representing a 69 per cent increase on the $1.3bn raised in 2014, according to the latest figures from London & Partners, the Mayor of London’s promotional company.

Nationally, the technology sector is continuing to attract record levels of venture capital funding, with companies raising more than $3.6 billion during the period.

Analysis of VC investment by London & Partners shows that since 2010 UK technology companies have collectively raised almost $10 billion ($9.7bn) with London-based firms accounting for more than half of the total ($5.2 billion).

During 2015 the investment secured by London-based tech firms accounted for 63 per cent of total VC investment raised by UK tech firms.

Mayor of London Boris Johnson MP said: “The Mayor of London Boris Johnson MP said: “With a flourishing tech scene and one of the world’s leading financial centres, it is no surprise to see that London’s tech companies are attracting record levels of investment.

“Our world-class talent pool and our culture of innovation and entrepreneurial spirit are helping the sector to grow from strength to strength. We can expect the capital’s tech sector to continue to generate jobs and growth for the city’s economy for many years to come.”

Eileen Burbidge, Partner at Passion Capital and Mayor of London tech ambassador said: “Today’s record investment figures offer further proof that the UK’s tech sector continues to mature. Investors are increasingly attracted by the diversity of London’s tech ecosystem but also our strengths in certain sectors such as FinTech.

“With more investment coming in from overseas and greater access to London-based growth funds, there has arguably never been a greater time to start and grow a digital business in London.”

London’s booming fintech sector has also continued to secure record funding during 2015. The sector accounted for almost a quarter of all investment raised by London-based tech companies - including TransferWise, which raised $58m and WorldRemit hit $100m during the period.

In April 2015, London-based peer-to-peer lending company, Funding Circle secured the largest single deal of the year with a $150m funding round led by DST Global.

James Meekings, co-founder and UK Managing Director Funding Circle said: “Small businesses are the lifeblood of the economy and we’re passionate about helping them to access finance by connecting them directly with investors. The money we raised, from some of the world’s leading investors, allows us to continue to increase the number of small businesses that can borrow through Funding Circle, both in the UK and across the world. We want to become the first choice for small business lending.”

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