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London’s Tech Firms Set $1bn Funding Record

Michael Moore joined TechWeek Europe in January 2014 as a trainee before graduating to Reporter later that year. He covers a wide range of topics, including but not limited to mobile devices, wearable tech, the Internet of Things, and financial technology.

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Landmark figure for venture capital investment reached in just nine months

Technology companies in London have set an all-time record in attracting investment, according to a new report.

Research from London & Partners, the capital’s official promotions agency, found that the 34,000 technology firms in the capital have attracted more than $1 billion in investment so far in 2014.

This is significantly more than the figure from the whole of last year, when $719 million in funding was raised for the city’s firms, and is ten times higher than the amount raised during 2010.

London On View ImageCapital success

So far this year three companies – takeaway.com, farfetch.com and Funding Circle – have all successfully completed funding rounds in excess of $50 million.

The largest deal completed during the third quarter was a $65 million series D funding round by Funding Circle, the peer-to-peer lending network, in a deal led by Index Ventures with participation from existing investors, Accel Partners, Union Square Ventures and Ribbit Capital.

In 2014 alone new VC funds worth more than $1.5bn set up shop in London, with Google Ventures, Santander, and Balderton Capital all helping to create new investment vehicles in the City.

“These figures show, without any question, that this is an incredible period for technology firms in our city,” said the Mayor of London, Boris Johnson. “Tech is blossoming and our reputation for innovation and discovery, allied with outstanding talent, is attracting record breaking levels of investment from around the globe.”

London has benefitted from a wide range of recent initiatives and campaigns aimed at encouraging business and innovation in the capital, including the launch of a unique .london domain for companies based in the city, and the continued growth of Tech City at Old Street roundabout (pictured above).

The city has also staged such events as London Technology week, a series of more than 200 events taking place across the capital aimed at encouraging start-ups. According to research carried out earlier this year by Oxford Economics, the tech sector is expected to create an additional £12 billion of economic activity and 46,000 new jobs in the capital over the next 10 years.

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