UK tech sector makes history with world-beating investment performance
15 Jan 2020
Investments in the UK tech sector reached record-breaking levels for the third successive year, with the country outperforming an array of global rivals and dominating leading European competitors.
Research by tech entrepreneurs’ network Tech Nation with Dealroom for the Digital Economy Council shows that in 2019 UK companies secured £10.1 billion – up by more than £3 billion.
The country claimed more than a third of the £30.4 billion raised in Europe, with more venture capital investment than Germany (£5.4 billion) and France (£3.4 billion) combined.
Digital secretary Nicky Morgan commented: “These brilliant new numbers demonstrate the strength of the UK tech industry and how it is a sweet spot of our economy.”
Highlights of the report reveal that the UK tech sector:
Secured a 44% year-on-year venture capital (VC) funding increase
Increased its VC funding 40% for the third successive year
Exceeded growth rates for US and Chinese tech sector growth
Is third in the world for VC funding after the US and China
Won nearly half its investments (£4.6bn) from US and Asian investors
Overtook the USA for per capita investment
Produced eight new ‘unicorn’ companies (private startups worth £1 billion-plus), to the existing 68
These brilliant new numbers demonstrate the strength of the UK tech industry and how it is a sweet spot of our economy
Nicky Morgan, digital secretary
The UK also achieved a wider mix of foreign versus domestic investment than Germany and France, while its 44% investment growth far exceeds France’s increase of just over a third or Israel’s one fifth investment increase.