London companies more than doubled the amount of venture capital they raised in 2019 to a record high, according to media reports quoting research by data analytics company Refinitiv.
Last year, London-based companies raised £5.6bn ($7.1bn, €6.6bn) in venture capital, up from £2.5bn in 2018, while the number of deals rose to 319 from 293, the Refinitiv data showed, according to CityAM.com.
UK-based firms raised a record £8.1bn over the course of 2019, marking an 85-per cent year-on-year rise, with 560 deals taking place, the data showed. This compares with £4. bn raised by French companies, which took the number-two spot, and 128 deals.
Cornelia Andersson, Refinitiv head of M&A told CityAM it would be interesting to see whether or not the UK would maintain its dominant position with Brexit underway. British-based companies accounted for six out of every ten deals.
“It’s fantastic to see record levels of investment driving start-up activity in the UK. Despite the overall economic uncertainty over the last year, it’s clear that entrepreneurs are playing a pivotal role in powering UK plc,” CityAM quoted Andersson as saying.
The UK has been a hot-spot for funding and investment over the last couple of years. Data earlier in January 2020 showed investment in the tech sector alone hit a record £13bn in 2019.
The Refinitiv data showed London’s two most active investors were Senderwood, which targets investments in the financial technology, media and health technology sectors and invested £34.6m in 18 deals, and followed by MM Ventures, which specialises in early-stage tech companies, with £22.5m.