According to a report prepared by Tech Nation, a UK government funded research organisation, the UK tech sector as a whole attracted some $15 billion (£10.8 billion) in VC investment in 2020, behind only the United States and China, but ahead of all of Europe.
Additionally, London has placed fourth for annual venture capital (VC) investment in tech for the second year running behind only San Francisco, Beijing and New York.
The finding forms part of the Tech Nation Report 2021, which highlights the “remarkable resilience and growth” of the UK tech sector over the last year.
By industry, the UK ‘Deep Tech” sector recorded the largest annual rise in investment at 17 per cent, representing the fastest rate of growth globally.
The report also found that the UK is “more attractive to international investors than ever”, with foreign investment accounting for over 63 per cent of investment in UK tech firms – up from 50 per cent in 2016.
Welcoming the report, Digital Secretary Oliver Dowden said: “With record levels of investment secured and UK listings gaining momentum, this report shows Britain’s tech sector continues to go from strength to strength, solidifying our position as one of the world’s top tech hubs.
“We want to bring about a golden age of UK tech through a raft of supportive measures and funding to help businesses thrive. This will help fuel a booming tech sector – creating jobs and improving services so that we can build back better from the pandemic.”
Separate research published last week revealed that the number of new tech companies established in the UK rose by 13 per cent in 2020, from 12,696 new incorporations in 2019 to 14,301 new incorporations last year.
For commercial support, including advice on mergers, acquisitions, investment, and corporate finance, please get in touch with Maung Aye at Mackrell.Solicitors today on +44 (0) 20 7240 0521 or at email@example.com