21 Aug 2019
UK tech industry obtains foreign investment
The rapidly growing tech industry in the UK has secured a record £5.5 billion in foreign investment in the initial seven months of this year, reports from the government’s digital economy council show.
In research conducted by the Department of Digital, Culture, Media and Sport (DCMS), the findings revealed that the UK had overtaken the US for the amount of investment per capita.
The weak pound is seen as the main factor for driving investment from Asia and the US, with about £3.1 billion of the investment coming from those two areas.
Tech companies that attracted investors included renewable energy company, Ovo Energy and takeaway business Deliveroo. Fintech firm checkout.com and supply chain finance company Greensill also secured major investments over the year.
Culture secretary, Nicky Morgan, said:
“These fantastic figures show the confidence overseas investors have in UK tech, with investment flows from the US and Asia at an all-time high.
We have a long-standing reputation for innovation and the statistics endorse our reputation as one of the best places in the world to start and grow a digital business.”
UK companies are increasing heading towards Asia to raise capital. With the pound currently being at a two-year low against the dollar, foreign investors too have become increasingly interested in investing in them.
Eileen Burbidge, chair of Tech Nation, commented:
“Investment in the UK tech sector has been steadily rising for years and as these latest figures demonstrate, the momentum is increasing.
“It is incredibly gratifying to see that in addition to domestic and European investors, British tech innovators are also attracting US and Asian investor attention and allocation.”
Chief executive and founder of Deliveroo, Will Shu, also remarked:
“The UK is a fantastic place to start and grow a tech company, attract talent and, ultimately, turn great ideas into products and services that consumers know and love. These figures underline the real potential that the UK tech sector has.”