London’s tech sector continues to fuel the growth of the UK’s digital economy, with the capital’s tech firms raising a record £2.45bn and accounting for around 80% of all UK VC tech funding in 2017 – with Improbable, Deliveroo and Truphone all raising some serious funding rounds last year, as noted in startups.co.uk.

Fintech is the leading sector for VC funding into London tech businesses with London fintech firms attracting a record £1.27bn this year. In fact, investment into London fintech companies accounts for 94% of all funding into UK fintech.

Compared to other European countries and major cities, the UK and London remain the favourite destination for tech investors. UK firms attracted almost four times more funding in 2017 than Germany (£694m) and more than France, Ireland and Sweden combined.

While London tech companies also raised significantly more VC investment than any other European city, including Amsterdam, Berlin and Paris.

Despite fears the UK’s decision to leave the European Union would badly damage investor appetite in UK start-ups, UK tech firms have continued to attract high levels of investment since the EU referendum vote – raising over £4bn of VC funding since 23 June 2016. With London tech firms raising a total of £3.2bn since the Brexit vote.

Venture capital funding into London and UK tech companies from 2012-2017

2012

2013

2014

2015

2016

2017

London

£260.98m

£344.72m

£646.30m

£963.73m

£1.23bn

£2.45bn

UK

£404.52m

£543.90m

£950.76m

£1.54bn

£1.63bn

£2.99bn

Source: PitchBook December 2017

Venture capital funding into technology firms in major European cities in 2017

European city

Total funding raised

London

£2.45bn

Paris

£564.97m

Berlin

£456m

Stockholm

£360.27m

Madrid

£65.38m

Amsterdam

£212.18m

Dublin

£117.45m

Helsinki

£56.98m

Copenhagen

£40.23m

Lisbon

£2.43m

Source: PitchBook December 2017

Venture capital funding into technology firms in major European countries in 2017

European city

Total funding raised

UK

£2.99bn

Germany

£694.49m

France

£667.63m

Sweden

£418.87m

Netherlands

£279.14m

Spain

£192.87m

Finland

£128.62m

Ireland

£123.06m

Denmark

£62.21m

Portugal

£6.63m

Source: PitchBook December 2017

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