The UK’s technology sector attracted more investment than Germany and France combined in 2019 – and about one-third of the total for Europe. Overall, tech investment surged ahead across the Continent during the year, but fell back abruptly in the US and – most markedly – in China
Technology has never been a more important indicator of the strength of a nation. Good news, then, that 2019 was a record year for the UK in terms of tech.
Investments in the UK tech sector soared to £10.1bn ($13.2bn) in 2019, according to research by Tech Nation. This was a £3.1bn ($4.0bn) increase on 2018 and the highest level in UK history.
The Tech Nation study, prepared in collaboration with Dealroom for the Digital Economy Council, shows that UK companies secured a third of the £30.4bn ($39.6bn) raised in Europe during 2019, with UK-based tech firms receiving more venture capital investment than Germany, £5.4bn ($7.0bn), and France, £3.4bn ($4.4bn), combined.
The number of rapidly growing UK tech companies soared as VC investment increased by 44% last year. Growth in VC investment exceeded 40% for the third year in a row, while investments in France grew by more than one-third (37%) compared with 2018 and Israel’s investments rose by one-fifth.
Formidable
Tech Nation’s chief executive, Gerard Grech, said: “In 2019 the UK secured a formidable 33% of all European tech investment, at £10.1bn ($13.2bn), despite accounting for roughly 9% of Europe’s population.
“Equally exciting is the rapid expansion of digital tech growth across the UK regions, which augurs well for national GDP growth and a truly connected Britain.”
Digital minister Matt Warman added: “As we head into a new decade, we want to keep up this momentum, ensuring that the tech sector flourishes right across the country, helping more entrepreneurs turn their ideas into business successes and strengthening the nation’s digital skills.”
