The UK tech sector has attracted more foreign investment in the first seven months of 2019 than it did during the whole of last year, says a new report.
Research prepared for the Digital Economy Council by Tech Nation and Dealroom.co shows that between January and July this year, UK-based tech firms received $6.7 billion in funding, over half of which came from American and Asian investors.
The British tech sector currently attracts an average of $1bn a month, it reports, from both foreign and domestic investors.
The surge has been explained in part by an increase in high-value tech deals.
During the second quarter of 2019 more than $1.9bn of investment came via deals involving investments of $100m or more. The percentage of deals involving at least one foreign investor peaks when the value of an investment totals $50m or more, it said.
Ninety two per cent of deals of this round size in London involved a foreign investor. High-value deals made outside of London, like that of Bristol’s OVO Energy, also had high levels of foreign investment.
Tech Nation said the latest figures mean the UK tech sector has now overtaken the US for foreign investment, per capita.
Nicky Morgan, Secretary of State for Digital, Culture, Media and Sport, said the latest figures represent foreign investor’s confidence in the UK tech sector.
“We have a longstanding 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,” she said.
Eileen Burbidge, chair of Tech Nation, said: “Investment in the UK tech sector has been steadily rising for years and as these latest figures demonstrate, the momentum is increasing.
“It is incredibly gratifying to see that in addition to domestic and European investors, British tech innovators are also attracting US and Asian investor attention and allocation.”
Will Shu, founder and chief executive officer of Deliveroo, added: “The UK is a fantastic place to start and grow a tech company, attract talent and, ultimately, turn great ideas into products and services that consumers know and love.
“These figures underline the real potential that the UK tech sector has.”