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Investors ploughed £6.7 billion into UK tech companies in 2016 despite Brexit

Jan 12, 2017, 15:21 IST

Deliveroo

Investors backed UK tech companies with £6.7 billion in 2016, according to data from London & Partners, the Mayor of London's promotional company.

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The data, sourced from deal database Pitchbook, shows that the UK's technology sector drew more investment than that of any other European country in 2016, according to London & Partners.

More than a third of the money went to tech companies in London, London & Partners said, with food delivery startup Deliveroo raising £210 million ($275m), more than any other firm.

While the numbers may sound impressive, Yoram Wijngaarde, founder and CEO of Dealroom.co, pointed out on Twitter that London & Partners changed its data source and its parameters between 2015 and 2016, making it impossible to draw comparisons.

For 2015, London & Partners analysed venture capital deals in CBI data, while in 2016 London & Partners looked at venture capital, private equity and M&A deals. It "would be nice to know 2015 like for like," said Wijngaarde, adding that he suspects investment into UK tech companies may have been down in 2016 when compared to 2015.

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London & Partners did not immediately respond to Business Insider's request for comment when we asked why the organisation changed its parameters and its data source.

Sadiq Khan

The Mayor of London, Sadiq Khan, said in a statement: "Despite the Brexit vote, the capital continues to attract record levels of investment."

Elsewhere in the announcement, which is designed to bang the drum for the tech sector in London, the promo agency highlighted several examples of US tech giants investing in the capital.

After the UK voted for Brexit, several of the world's biggest technology companies came out saying they remained committed to the UK. Google said that it will definitely build its new £1 billion London HQ in King's Cross, Facebook announced an additional 500 jobs for London, and Apple said it plans to set up a new headquarters in London's iconic Battersea Power Station. Snapchat also said this week that it plans to set up its international HQ in London.

Saul Klein, investor at London VC firm Localglobe, said in a statement: "London will remain a leading global hub for investing in technology companies. There is more talent, capital and diversity in London's tech sector than any other European destination.

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"The success of London has been built on a strong culture of collaboration between investors, entrepreneurs and policy makers. It is important that we continue to support initiatives such as the London VC club which are helping to directly connect investors with the exciting array of companies in London's tech ecosystem."

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