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12 Apr 2017

Venture capital investment in UK startups on the rise, despite Brexit fears

New figures suggest that Britain is shaking off concerns over the Brexit vote, as the economy is enjoying a rise in investment from venture capitalists, City A.M reports.

According to KPMG´s quarterly Venture Pulse report, more than USD1bn (GBP804mn) was invested in British tech startups in the first quarter of 2017, after falling below that figure at the end of 2016.

This could ease concerns that leaving the European Union will make the UK less attractive for investors.

However, the figures do reveal that investors opted for bigger later-stage deals, with the number of deals dropping 10% to 196, in search of less risky business.

This cautiousness is also reflected elsewhere in the world. Global VC investment rose by 13% to USD27bn yet deal volume fell; in Europe, the USD3.4bn investment remained flat compared to the previous quarter, while deal volume was also down.

Patrick Imbach, KPMG´s co-head of tech growth, noted that UK venture capitalist investment activity is at “robust levels,” which should be “a cause for optimism” for the year ahead.

Particularly attractive investment areas were biotech and life sciences, while the stand-out deals of the year so far were Currencycloud´s GBP20mn plough from investors such as Google, and Funding Circle´s GBP82mn investment.

Furthermore, tech giants such as Apple and Snap chose London for their international headquarters, suggesting a wider confidence in post-Brexit Britain.

Copyright M2 Bespoke 2017

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