Data Science Investment Counter —Funding raised by UK data science companies in 2018.
£ 5.640 Million

UK Tech Raised £1.1BN Venture Funding in Second Quarter of 2017

British technology companies raked in £1.1 billion ($1.42 billion) in venture capital over the second quarter of 2017—a 23 percent increase from the sum raised in the first quarter (£890 million or $1.15 billion)— according to a report by KPMG Enterprise. The report found that London alone amassed £850 million ($1.1 billion) in VC money.

The study, which analysed VC trends globally and in key regions, revealed that, while the UK increased its share of VC funding, the number of deals on British ground declined to 189— compared to 258 deals closed in the first three months of 2017.

The magnitude of Britain’s VC share was vastly increased by a single deal: Softbank’s £389 million ($502 million) investment in simulation startup Improbable.

“London’s mammoth Q2’17 haul of $1.1 billion would have been $628 million when taking into account virtual gaming company Impropable’s $502 million financing,” the report reads.

Patrick Imbach, head of KPMG’s Tech Growth  said in a statement: “I think particularly when you consider the risk profile of the business, it’s not an exaggeration to say [Improbable’s] was a ‘one of a kind’ investment.”

“It shows how UK’s ‘deep tech’ sector is catching the attention of investors from around the globe, and is a timely reminder that tech investment in post-Brexit Britain absolutely can, and will come from outside Europe,” he added

Brexit is apparently still not a concern for VC investors, as the UK remains “highly attractive to startups and investors as a result of its strong talent base, leading universities, and government incentives and support programs,” according to the analysis.

Nonetheless, KPMG hypothesises that post-Brexit restrictions on immigration could damage Britain’s tech sector, and especially some high-competition segments such as the biopharmaceutical industry, as other European countries are positioning themselves to snap up the best researchers.

The report noted how in Europe at large—like in Britain— the number of deals has been dwindling, while the value of individual deals is on the rise.

“The trend seen both in the UK and across wider Europe of a falling deal count, but increasing deal value is perhaps indicative of investors becoming more discerning at the Angel and Seed stages while investment accelerates in later-stage companies with more proven business models and market traction,” Imbach said.

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