London tech startups have received a record amount of money from investors so far this year, according to figures being touted by London mayor Boris Johnson’s promotional agency London & Partners.
Startups in the capital were given over £1 billion between January and today. This is more than three quarters of the £1.4 billion that has been invested into the UK tech sector over the same time period, said London & Partners.
London’s ecommerce startups have been particularly successful in securing funding over the last three months.
Fast food delivery service Deliveroo raised £46 million, online furniture retailer MADE.com raised £39 million, travel offer site Secret Escapes raised £39, and community-based student loan provider Prodigy Finance raised £12 million.
Between them, the four companies took 50% of all London VC investments in the last quarter.
Eileen Burbidge, partner at Passion Capital and the Mayor of London’s tech ambassador for the city, said: “We are now starting to see more later-stage investments which support the scaling of more London tech businesses.
“Today’s figures and the fact that London is home to more software developers than anywhere else in the world validate the fact that London’s tech sector is maturing and is one of the world’s leading tech hubs.”
The figures suggest the overall UK digital economy is going from strength-to-strength as UK tech companies raised £1.3 billion in the whole of 2015 and less than £100 million in 2010.
Cities like Cambridge, Manchester and Bristol complain that London steals the limelight when it comes to tech, and the London & Partners data suggests there is a huge divide between the capital and the rest of the country, with investors favouring the products and platforms that are being built by developers in hubs like Shoreditch.
But there are
3,228 tech firms for ever square kilometre within Shoreditch’s EC1V postcode so it’s not surprising that some of them are appealing to investors.
As you might expect, London & Partners has a habit of banging the London tech drum with these press releases, which are issued at least once a quarter.
But London’s funding rounds and IPOs are still dwarfed by what’s happening in Silicon Valley, where Uber has raised over £5 billion at a valuation in excess of £33 billion, despite being just six-years-old.
It’s also no secret that the UK is yet to produce a company on anywhere near the same scale as Google, Apple or Facebook.
Startup founders and venture capitalists in the UK claim this is largely down to the fact that UK companies aren’t able to raise the same amount of capital.
There are several well-known venture capital companies in London now — including Index Ventures, Balderton Capital, and Accel Partners — but Alistair Mitchell, the British cofounder behind enterprise collaboration firm Huddle, maintains that there is more venture capital money on Sand Hill Road in Palo Alto than there is in the whole of the London.
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