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US and Asian investment in UK tech skyrockets

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The UK tech sector has attracted more foreign capital investment in the fist seven months of 2019 than it did for the whole of 2018.

• $6.7 billion has been invested in UK tech companies in the first seven months of 2019
• More than half ($3.7B) of these investments have come from America and Asia
• UK tech has now overtaken the US for foreign investment, per capita 
• The sector is averaging $1bn a month from both foreign and domestic investors
• The top 30 foreign-funded companies have created more than 5,000 UK jobs
• This talent is being celebrated in Tech Nation’s Bright Tech Futures Awards

Published in: Technology
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US and Asian investment in UK tech skyrockets

  1. 1. The UK has become the world’s hottest tech hub in 2019 21August2019 Bristol’s Clifton Suspension Bridge. Photo by Vadim Sherbakov.
  2. 2. Source: Dealroom.co Summer update on UK tech sector August 2019 | Check underlying data via https://datacommons.technation.ioPage / 2 InvestmentinUKtech skyrocketing GlobalinvestorinterestinUK techsurging UK’stechleadersarealsojob creationengines $4.7B $6.7B 2019 Jan-Jul 2018 Jan-Jul $1.5B $3.7B 10K jobs 15K jobs 2019 Jan-Jul 2018 Jan-Jul 2019 Jul 2016 Dec +43% VenturecapitalinvestedinUKstartupsduring JanuarytoJuly +147% CapitalinvestedinUKstartupsbyUSandAsian investors +61% Additionaljobscreatedbythetop30foreign- fundedcompaniessince2016
  3. 3. August 2019 | Check underlying data via https://datacommons.technation.io Source: Dealroom.co Investment inUKstartups isreachingnewheights, mainlydriven byrounds above $100 million (while rounds below $100million alsocontinue growing). Summer update on UK tech sector Page / 3 $100M+ rounds $50M-$100M $25M-$50M $10M-$25M $0M-$10M$0.4B $0.5B $0.5B $0.4B $0.5B $0.5B $0.5B $0.4B $0.5B $0.5B $0.4B $0.5B $0.4B $0.5B $0.3B $0.3B $0.3B $0.2B $0.3B $0.3B $0.4B $0.4B $0.3B $0.5B $0.5B $0.4B $0.4B $0.5B $0.3B $0.2B $0.2B $0.2B $0.2B $0.3B $0.5B $0.3B $0.2B $0.2B $0.4B $0.6B $0.5B $0.5B$0.4B $0.1B $0.1B $0.2B $0.1B $0.3B $0.4B $0.2B $0.3B $0.5B $0.4B $0.3B $0.3B $0.7B $0.1B $0.3B $0.2B $0.2B $1.4B $0.7B $1.1B $0.5B $0.6B $0.5B $0.5B $0.8B $1.9B $2.1B $1.2B $1.4B $1.1B $1.5B $2.5B $2.4B $2.6B $1.7B $2.1B $2.4B $2.4B $2.3B $3.7B $0.0B $0.5B $1.0B $1.5B $2.0B $2.5B $3.0B $3.5B $4.0B Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2016 2017 2018 2019
  4. 4. August 2019 | Check underlying data via https://datacommons.technation.io Source: Dealroom.co Investment fromUSandAsianinvestors reached$3.5billion inthefirst halfof2019, more thaneachofthefullyear2018and2017. Summer update on UK tech sector Page / 4 Venture capital investment from the USA and Asia into the UKName Investors From Round Greensill Supply chain finance SoftBank $ 800M GROWTH EQUITY Deliveroo Food delivery platform Amazon, Greenoaks Capital Management, Fidelity, T. Rowe Price $ 575M SERIES G Babylon Health Remote health consultations Kinnevik, Vostok New Ventures, PIF- Public Investment Fund, MunichRE/ERGO CVF $ 550M SERIES C OakNorth Bank Bank for SMEs SoftBank, The Clermont Group $ 400M LATE VC OVO Energy Energy tech and supplier Mitsubishi Corporation $220M GROWTH EQUITY Checkout.com Online payment solutions Insight VP, DST Global, GIC, Endeavor Catalyst, Blossom Capital $ 230M SERIES A WorldRemit Online money transfer Accel Partners, Technology Crossover Ventures, LeapFrog Investments $ 175M SERIES D Monzo Digital-only bank platform Accel Partners, Passion Capital, General Catalyst Partners, Thrive Capital, Y Combinator, Orange Digital Ventures, Stripe, Goodwater Capital $ 144M SERIES F Wejo Access to connected car data General Motors $ 102M SERIES B Asia USA $0.7B $1.1B $0.8B $0.5B $1.5B $1.9B $1.1B $1.8B $3.5B H1 H2 H1 H2 H1 H2 H1 H2 H1 2015 2016 2017 2018 2019
  5. 5. $0.7B $1.1B $0.8B $0.5B $1.5B $1.9B $1.1B $1.8B $3.5B $0.5B $0.3B$0.2B$0.3B $0.4B $0.5B $1.6B $0.4B $0.8B $0.1B $0.2B $0.1B $0.4B $0.2B$0.1B $0.5B $0.1B $0.5B $0.7B $0.9B $1.3B $0.6B $1.4B $2.1B $1.5B $1.7B $2.9B H1 H2 H1 H2 H1 H2 H1 H2 H1 H1 H2 H1 H2 H1 H2 H1 H2 H1 H1 H2 H1 H2 H1 H2 H1 H2 H1 H1 H2 H1 H2 H1 H2 H1 H2 H1 2015 2016 2017 2018 2019 . 2015 2016 2017 2018 2019 . 2015 2016 2017 2018 2019 . 2015 2016 2017 2018 2019 August 2019 | Check underlying data via https://datacommons.technation.io Source: Dealroom.co WhileallofEurope isexperiencing increased interest fromUSandAsianinvestors, thetrendisthestrongest intheUK. Summer update on UK tech sector Page / 5 United Kingdom Germany France Rest of Europe = USA = Asia USA Asia
  6. 6. Source: Dealroom.co Summer update on UK tech sector August 2019 | Check underlying data via https://datacommons.technation.ioPage / 6 $14.6B $6.5B $4.2B $2.5B $2.2B $1.4B $1.3B $1.2B United Kingdom Germany Switzerland France Sweden Ireland Spain Netherlands InvestmentfromUSAandAsiaintoEurope(2013-2019YTD) Since2013,UKstartups haveraisedmore fromUSandAsianinvestors thanmost of Europe combined. AsiaUSA
  7. 7. August 2019 | Check underlying data via https://datacommons.technation.io Source: Dealroom.co Asaresult, thefunding mixintheUKhasdramatically shifted. Bycontrast, France’s funding mixhasremained relatively stable. Summer update on UK tech sector Page / 7 USA Asia Europe Cross-border Domestic Rest of World United Kingdom Germany France Total Europe 25% 32% 31% 21% 28% 30% 30% 30% 16% 24% 19% 19% 27% 23% 4% 13% 18% 13% 11% 14% 15% 29% 26% 27% 20% 26% 26% 29% 5% 6% 7% 13% 7% 27% 1% 14% 1% 4% 9% 16% 10% 2% 4% 2% 1% 1% 6% 3% 6% 10% 8% 12% 2% 1% 2% 2% 1% 2% 2% 5% 1% 15% 3% 2% 2% 1% 1% 2% 3% 4% 3% 2% 2% 3% 4% 1% 11% 11% 12% 15% 11% 17% 12% 30% 24% 31% 34% 25% 24% 41% 13% 23% 17% 18% 14% 16% 20% 22% 22% 25% 25% 18% 22% 26% 61% 51% 49% 55% 47% 45% 29% 38% 42% 43% 41% 32% 30% 25% 81% 63% 62% 63% 73% 64% 65% 44% 43% 43% 47% 43% 39% 32% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2013 2014 2015 2016 2017 2018 2019 YTD 2013 2014 2015 2016 2017 2018 2019 YTD 2013 2014 2015 2016 2017 2018 2019 YTD 2013 2014 2015 2016 2017 2018 2019 YTD
  8. 8. 31% 47% 30% 14% 25% 30% 14% 15% 7% 10% 16% 6% 13% 4% 3% 2% 24% 2% 2% 26% 2% 0% 2% 2% 15% 24% 15% 33% 32% 33% 31% 18% 23% 17% 37% 21% 28% 33% 50% 64% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Israel Switzerland United Kingdom Spain Germany Sweden Netherlands France USA and Canada Asia Rest of World Europe cross-border Domestic Source: Dealroom.co The UKhashadawider mixofinvestors, compared toGermany, Swedenand France which relymoreondomestic andEuropean funding. Summer update on UK tech sector August 2019 | Check underlying data via https://datacommons.technation.ioPage / 8 %offoreigninvestment(2018–2019YTD)bycountryandsource
  9. 9. August 2019 | Check underlying data via https://datacommons.technation.io Source: Dealroom.co. BothVCsandCorporates areresponsible fortheincreased investment outofAsia andtheUSintotheUK. Summer update on UK tech sector Page / 9 – 5% 10% 15% `13 `19 – 20% 40% 60% 80% `13 `19 Europe USA and Canada Asia Corporates Venture Capital Other 0% 3% 6% 9% 12% `13 `19 – 2% 4% 6% 8% 10% `13 `19 – 10% 20% 30% `13 `19 – 10% 20% 30% `13 `19 – 2% 4% 6% 8% `13 `19 % based on rounds count % based on amount % of capital invested by region and investor type Greensill OakNorthBank OVO Energy Not meaningful Not meaningful
  10. 10. 28% 43% 57% 72% 93% 21% 30% 42% 60% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2015 2016 2017 2018 2019 YTD 2015 2016 2017 2018 2019 YTD 2015 2016 2017 2018 2019 YTD August 2019 | Check underlying data via https://datacommons.technation.io Source: Dealroom.co Theshiftinfunding mixisdriven bybothanincrease inthenumber oflargerrounds, aswellasanincrease offoreign investment withinround sizes. Summer update on UK tech sector Page / 10 0-$10M $10-$50M $50M+ % of rounds with at least one foreign investor London based startups UK startups ex-London
  11. 11. Ofthetopthree global techhubs, theUKattractsnearlyasmuchnon-domestic capital asthemuchbigger China.TheUKisaheadoftheUSAonapercapitabasis. August 2019 | Check underlying data via https://datacommons.technation.ioPage / 11 Summer update on UK tech sector Non-domestic venture capital investment Non-domestic venture capital per capita - $5B $10B $15B $20B $25B $30B $35B $40B $45B $50B 2015 2016 2017 2018 2019 E China United States United Kingdom $0 $25 $50 $75 $100 $125 $150 2015 2016 2017 2018 2019 E United Kingdom United States China
  12. 12. Isinvestment fromUSandAsia good forUKtech?Since2016, valuations tripled as these startups scaleglobally, benefiting founders &early(UK)investors. Thetop30 startups aloneadded 5Knewjobs andnowprovide 15Kjobs. August 2019 | Check underlying data via https://datacommons.technation.ioPage / 12 Summer update on UK tech sector 10K 15K 2016 2019 July …these30companiesgrewnumber ofjobsby5Kto15Ksince2016… …whilethecombinedvaluationof these30companiestripledto$45B. $15B $45B 2016 2019 July Top30UKcompaniesraisingthe mostcapitalfromUSandAsia…
  13. 13. Themost complete anddetailed picture ofUK’stechecosystem, inpartnership with TechNation. August 2019 | Check underlying data via https://datacommons.technation.io 31,300+ startups&scaleups 500+ Accelerators, workspaces 10,200+ funds&corporateinvestors 19,500+ Fundingrounds&exits Page / 13
  14. 14. Initiated by For founders Knowyour ecosystem Getinspired For VCs & corporates Discoverhot startups & scaleups Getnew insights& trends For researchers Apply fordataaccess,to supportyour researchprojects. For governments Betterunderstandingofstartup ecosystemdynamics Visit https://datacommons.technation.io Powered by To discuss partnership opportunities, contact support@dealroom.co
  15. 15. Arapidly expanding network ofEuropean ecosystems, powered byDealroom’s API.
  16. 16. Themostcomprehensivesourcefordataoninnovative companiesandventurecapitalinvestment. 77% more startup data than the #2 Number of European rounds tracked in 2018 More data per company to discover promising companies
  17. 17. blog.dealroom.co If you like this report, please share it! Gligor Micajkov Research Analyst gligor@dealroom.co Ivan Draganov Research Analyst ivan.draganov@dealroom.co Lotf Belych Research Analyst lotf@dealroom.co For questions or feedback about this report, or to see how Dealroom can help you, please feel free to contact us.

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