Venture capitalists (VC) put less money into UK tech firms in 2016 than they did in 2015, according to data collated by deal watcher Pitchbook.
The data — spun in a positive light on Thursday by the Mayor of London’s promotional agency, London and Partners — shows that VC investment into UK tech companies fell by around £80 million from £2.04 billion in 2015 to £1.96 billion in 2016.
A spokesman for London & Partners confirmed the decline to Business Insider but said VC funding is increasingly being complemented by private equity funding, citing Deliveroo’s £200 million funding round in August as a prime example.
While the overall UK tech sector received less money in 2016, London tech companies received more last year than they did in 2015, with VC investment into London tech firms climbing from £1.36 billion in 2015 to £1.43 billion in 2016.
Tech companies in the UK received considerably more VC funding in 2016 than their counterparts across Europe, according to Pitchbook’s data, with tech companies in Germany raising the next most at £922 million, followed by France on £760 million.
Even after the Brexit vote, investment into UK tech companies continued to outstrip investment into tech firms in other European countries. Venture capitalists put over £1 billion into UK tech firms after the vote, which is more than double what they put into tech companies in Germany and France.
Eileen Burbidge, partner at London venture capital firm, Passion Capital, said in a statement: “The UK is undeniably a leading destination for investors, entrepreneurs and businesses alike. With a diverse talent pool, global financial centre and a strong culture of innovation, it is no surprise to see that the London has attracted more investment than any other major European city in 2016.
“The UK continues to lead the way in the development of cutting edge technologies and areas such as big data, cybersecurity and ecommerce, are creating exciting opportunities for investors from all over the world. Recent investments announced by the likes of Facebook and Google further demonstrates the strength of London’s tech sector and shows that London is still very much open for business and investment.”