UK overtakes China in tech startup investment at $15.6 billion

UK overtakes China in tech startup funding at $15.6 billion

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London has been voted the European metropolis with probably the most start-up funding, and about half of the cash raised to date within the UK this yr has gone to fintech.

In line with knowledge from Dealroom, UK tech startups will elevate $15.6 billion in funding by 2022, surpassing China and India for the primary time.

Dealroom right this moment (13 June) launched a brand new report for the UK Digital Economic system Fee, which reveals that UK corporations raised extra VC funding within the first 5 months of 2022 than your entire yr of 2020.

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Consequently, it turned the second-largest nation on this planet after the USA, adopted by India, China and France.

In line with the report, the UK has doubled its funding within the European market to date this yr, whereas France has raised $7.6 billion. The UK additionally raised $11.3 billion from startups within the first quarter, making it the most important annual income ever.

This enhance in capital makes the UK residence to 122 unicorns, with a minimum of one unicorn in additional than 20 cities and cities throughout the nation. Greater than a 3rd of Europe’s fastest-growing next-generation expertise corporations are headquartered within the UK.

UK Digital Minister Nadine Dorries mentioned: “It’s a exceptional achievement that UK tech corporations are attracting extra funding than international locations greater than 10 instances our measurement. “It is a great confidence in nice British expertise and the expertise behind the progressive and aggressive market we’ve got.”

London was chosen because the European metropolis with probably the most startup funding after Paris, Berlin, Tel Aviv and Zurich.

In line with Dealroom knowledge, there are 248 potential future unicorns within the UK, of which 151 are in London. This reached a price of $1 billion in comparison with 114 corporations in France and 106 corporations in Germany.

Fintech takes the lead

The fintech sector is now the clear winner within the UK, accounting for about half of all funds raised to date this yr, elevating $7.8 billion over 172 rounds.

This was nicely forward of different sectors, with Well being taking second place with lower than $1 billion raised to date. It was adopted by telecommunications, transportation, advertising and marketing and power.

Dealroom CEO Yoram Wijngaarde mentioned: “Regardless of the widespread world challenges which have led to a slowdown within the public market, personal expertise funding within the UK continues to develop.”

“The UK has solidified its popularity as top-of-the-line locations to spend money on fintech, with extra fintech investments occurring in comparison with the Bay Space within the first half of this yr.

“Virtually all the pieces will likely be affected by the recession we have entered, however general the UK tech sector is in a stronger place than ever by way of the breadth and depth of your entire ecosystem.”

In March, Dealroom’s evaluation valued the UK tech ecosystem at $1 trillion. This has led the UK to achieve this groundbreaking valuation after a interval of exceptional development, the third on this planet after the US and China.

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