London retains crown as Europe’s leading hub for tech investment


– London sees strong investment in high-growth sectors, including more fintech VC funds than any other city.


Global tech investors continue to put their faith in London, with the latest year-end VC investment figures from Dealroom and London & Partners showing that technology companies in the UK capital raised a staggering $19.8 billion last year. is showing. Despite the difficult economic climate, London’s tech companies will raise twice as many investments as any European city in 2022, ranking him fourth on the world stage.


London pushes total VC funding secured by UK tech companies to $29.9 billion in 2022, making it the third-largest technology investor after the US and China. Last year’s biggest funding rounds for London companies included: His $1 billion Series D round for Checkout.com. The Go Cardless Series G round is $312 million and the Paddle Series D round is $200 million.


The data shows that global VC funding in 2022 is down 33% from record levels in 2021, with total raised of $485.2 billion last year compared to $723 billion the year before. This trend has been replicated at the European level, with a total of $94 billion raised in 2022. This is down 22% from his $120.8 billion raised in 2021.


High levels of dry powder build up in UK capital


The future investment landscape of London and UK companies remains optimistic, with further analysis from Dealroom showing that VCs are adding increasing amounts of growth capital to new funds in London.


Total new capital raised by London-based VCs in 2022 was $6.6 billion, more than any previous year. This brings him to $11.4 billion in total raised over the past few years (2021 and 2022).


Some of the world’s largest investment firms have launched new funds or set up bases in London in the past year. Significant new London-based funds include Northzone’s $1 billion early-stage fund, Atomico’s $650 million European investment fund, and Phoenix Court’s $500 million fund, which includes LocalGlobe and Latitude will be In addition, Sequoia Capital, Lightspeed Ventures and General Catalyst have also recently expanded their presence in the UK capital.


Strong performance in London’s high-growth sector


Many of London’s fastest growing tech sectors have broken the overall funding trend in 2022, with over 10 different subsectors raising over $500 million.


London’s edtech, cybersecurity and gaming sectors all raised more money in 2022 than they did in 2021, according to Dealroom data. Immersive game company Improbable.


The London fintech sector also performed strongly in 2022, with fintech companies in the UK capital raising a total of $9.7 billion. This is more than any other city in the world. In addition to seeing more investment than New York or the Bay Area, London fintechs accounted for 42% of all European fintech funding last year.


London shows growth in impact technology investment


Another sector showing promising signs of future growth in London is impact tech companies. This is a company that has at least one of the United Nations Sustainable Development Goals at the heart of its mission.


London impact tech companies raised over $2 billion in VC funding last year and now account for over 10% of all London VC funding for the first time.


Urban climate tech companies are a big driver of that growth, with a London climate tech company raising $1.5 billion. That’s a 17-fold increase over the last five years and more than in any year except 2021 ($1.9 billion). Those numbers include his $135 million founding round of GrowUp Farms, a vertical farming company, and his $225 million investment in renewable energy provider Octopus Energy.


Laura Citron, CEO of London & Partners, said: “Despite the difficult situation, London’s technology sector appears resilient. Investors are raising and deploying more capital than ever before in high-growth companies. London’s innovation builds on London’s deep historical strengths, with areas such as FinTech, EdTech and Gaming thriving.This data indicates that London continues to be a European technology hub and a hub for technology businesses. It shows that it is one of the best places in the world to expand.”


Julia Hawkins, partner at London-based VC firm Phoenix Court, said: “London is at the heart of a region of remarkable technological growth, stretching from the heart of the capital to Manchester, Bristol, Oxford, Cambridge and other UK clusters including Paris and Amsterdam. Expect some of the world’s largest companies to be built from here over the next 20 years as the capital continues to attract significant investment thanks to its talent base and global leadership in areas such as fintech and artificial intelligence. doing.”


General Catalyst Managing Director Chris Bischoff added: “When General Catalyst decided to open an office in Europe after more than a decade of investments in the region, London was the first choice. Long a hub for innovation in financial services, the capital is , has developed a broad ecosystem that leads fields such as enterprise, healthcare, life sciences, and has done pioneering work in AI.Beyond that, it remains a hub of talent in Europe. We are here to give local founders access to our global network and deep sector expertise. We believe London-based start-ups, such as Multiverse and Charm Therapeutics, which are included in , have the potential to become transformative and enduring companies with global impact.”


Check Warner MBE, Partner, Ada Ventures, Co-Founder Diversity VC said:London’s position as a global hub for technology investment is unshakable, even in a difficult macroeconomic climate. Not only that, but his $6.6 billion VC will be raised by a London-based VC in 2022, ensuring that London remains one of the world’s leading cities in tech for decades to come. There are strong indicators that With a strong focus on the importance of good social and environmental credentials and strong governance, London has demonstrated leadership in the high impact investment space, building and scaling impactful technology companies. Arguably the best city in the world to expand. At Ada Ventures, we’re excited about the opportunity to invest in the amazing mission-driven entrepreneurs who are building companies in this city for years to come. ”


Note to editors


All data in this press release is provided by Dealroom.co for London & Partners. All data were downloaded on January 5, 2023.


About London & Partners


London & Partners is a London business growth and destinations agency. Our mission is to create resilient, sustainable and inclusive economic growth. We are a not-for-profit company, operating as a social enterprise, half funded by the Greater London Authority (GLA) and half funded by other sources, including a portfolio of commercial ventures. For more information, see:www.londonandpartners.com


About Dealroom.co


Dealroom.co is a leading data provider on startups, growth companies and technology ecosystems in Europe and around the world. Founded in Amsterdam in 2013, Dealroom.co currently works with many of the world’s most prominent investors, entrepreneurs and government agencies to provide transparency, analysis and insight into startup and venture capital activity. doing.

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