European investment in UK tech surges despite Brexit uncertainty

The average value of deals has risen by 14 per cent

Wednesday, May 8, 2019

Britain’s tech industry has had a surge in European investors despite Brexit uncertainty, according to a new report.

A record high of £1.89bn from Europe was invested into the countries technology sector in 2018, up from £1.6bn in 2017, according to new data from law firm Penningtons Manches.

The average value of deals rose by 14 per cent as investment sizes grew.

Rob Hayes, Penningtons Manches head of tech, said: "When it comes to the creation of cutting-edge technology, the UK is well and truly established on the world map.

"It is no coincidence that in 2018, the country's high-growth, innovative, tech-focused companies continued to attract attention from international investors.

"Our research has shown that, despite the impact of Brexit, the UK and its leading technology companies continue to be an attractive proposition for overseas investors seeking to deploy their funds into businesses with innovative and ground breaking technology."

The firm said The EU remains confident in the long-term prospects of the sector in the UK as the value of deals involving at least one EU investor rose to £1.53 billion, from £1.26 billion in 2017.

The US still remains the largest overseas investor in UK companies, with a third of the total funds secured by British firms coming from US backers.

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