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Posted on August 5, 2019 by staff

UK VC investment set to reach new record in 2019

The UK is set for a record year of VC activity, suggest a new report from White Star Capital.

Following a decline to $5.4bn in 2018 from the record heights of $5.8bn experienced in 2017, this year is set to surpass all previous figures.

The early-stage venture capital fund suggests that the total amount of funding secured by UK technology companies has already hit $4.9bn, accounting for 85 per cent of 2017’s funding and twice the amount of capital secured during the first six months of 2018.

The figures are the highest in Europe, claims the report. UK venture capital has totalled 63 per cent of European-wide deal values during the first six months of the year, and consistently represents more than a third of all of Europe’s rounds over $100m.

The FinTech sector continues to lead the way, attracting 22 per cent of all UK VC deals to date in 2019, while AI has recorded 15 per cent of the deals in 2019 and digital health and eCommerce both posted 4 per cent.

The UK’s focus on technology, White Star Capital suggests, has played a major role in the growth in crowdfunding.

“From day one, it was crucial for White Star to have a significant presence in the UK, as it has long been the European capital of venture funding,” said Eric Martineau-Fortin, Managing Partner of White Star Capital.

“In recent years, the UK has subsequently strengthened its position as a global leader in attracting VC investment and this report delivers a vote of confidence in the UK’s fast-growing businesses and the wider ecosystem during a crucial period for the nation.”

Nicholas Stocks, General Partner at White Star Capital, added: “The UK’s reputation as a global hub for financial services continues to grow and it is maintaining its influence in a number of other large markets, particularly the US. The nation’s future success will rely on regulation that encourages business growth, greater investment in education and research, along with further support for the tech sector.

“Our report addresses how the UK is likely to be affected by leaving the EU, as we consider how the nation can continue to attract major international companies and boost later-stage funding for the most innovative, homegrown firms.

“The key word is ‘talent’ – as nurturing and investing in tomorrow’s entrepreneurs will help to ensure that the UK can consolidate its position on the global stage.”