The Strategist

British venture capital investment forges ahead



03/23/2017 - 15:06



In 2016, The UK attracted more venture investments than France, Germany, the Netherlands and Denmark taken together. Apparently, the country’s decision to leave the European Union (Brexit) has not yet affected the British start-ups.



According to the annual Tech City UK survey, venture capitalists invested 6.8 billion pounds ($ 8.5 billion) in British high-tech companies in the last year. This figure is 2.5 times bigger than in France, and 5 times - than in Germany. Share of Great Britain in the European venture capital market rose to 43% in 2016 from 32% a year earlier, although total volume of such investments in the region fell by a third, to 15.8 billion pounds.

At the same time, London received 2.2 billion pounds, or almost twice as much as Amsterdam, the next European capital on the Tech City list.

French start-ups attracted a total of £ 2.4 billion, including £ 1 billion in Paris; German - 1.4 billion pounds (Berlin - 600 million pounds), the Netherlands - 1.3 billion pounds (almost the entire amount settled in the capital), the Danish - 900 million pounds.

In 2011-2016, venture capital investments in UK start-ups amounted to £ 28 billion, or twice as much as in France (11.4 billion pounds). Germany during this period attracted 9.3 billion pounds, the Netherlands - 8.6 billion pounds, Italy - 4.2 billion pounds.

Silicon Valley startups last year reduced volume of attracting venture capital by more than a quarter, which is worse than the average for the world as a whole, according to calculations by PricewaterhouseCoopers and CB Insights MoneyTree. Venture investment in the region, which is home to the world's largest high-tech companies, fell 28% to $ 24.9 billion, while number of transactions decreased by 21%.

At the same time, Washington recorded an increase of 26%, mainly due to a $ 1.2 billion financing deal for One Web. In Los Angeles, the growth numbered 13% thanks to funding of Snap, which owns social network Snapchat.

Despite last year's decline, Silicon Valley remains the largest region of the world in terms of attracted venture capital. It accounts for more than a quarter of all investments. This is nearly twofold larger than figure of New York, which takes the second place in the rating. 

source: techcityuk.com