According to the latest research, UK start-ups attracted a record level of investment last year.
Digital companies raised £10.1 billion in 2019, which represents a £3.1 billion increase on the previous year’s level. The results mean that the UK retains its position as the premier European hub for fast-growing technology-based businesses.
Britain is currently third in the world for venture capital funding, with the US and China occupying first and second place, with companies based in London raising £7.4 billion last year.
According to the latest research, the UK will continue to create rapidly-growing technology companies, even as its trading relationship with the European Union (EU) after Brexit remains uncertain.
Venture capital funds have increased their investment in digital firms based in the UK by more than 40 per cent over the past three years, according to data from Tech Nation. The sector remains on an upward trajectory, with eight digital firms in the UK reaching a valuation in excess of £770 million ($1 billion) in the last year.
These firms are known as ‘unicorns’, with several businesses such as Ovo Energy, Trainline, Acuris and Babylon Health reaching this landmark achievement.
Financial technology companies raised £4.1 billion in funding last year, which is more than double the figure in 2018, with Monzo, Starling and Oaknorth some of the notable firms that raised a significant amount.
Nicola Morgan, Digital, Culture, Media and Sport Secretary, said: “Our tech companies are not only commanding the confidence of global investors, but they are also creating new jobs and wealth.”