London has remained the number one hub for Europe´s technology investment, defying expectations of a negative impact from the Brexit vote.
Venture capital (VC) investment in London´s technology sector topped £1.1bn over the past six months, the highest level than at any time during the past decade.
The new report from London & Partners also found that London was attracting more VC investment in technology than any other European city.
Strong levels of investment in London´s technology sector have been underscored by the success of names such as virtual reality start-up Improbable and the likes of fintech companies Funding Circle, Zopa and Monzo in attracting investment.
According to London & Partners, a unit charged with promoting London for the Mayor´s office, since the Brexit vote London has captured more than double the amount of VC investment in its technology sector than any other European city.
The tally for London amounts to £1.8 billion in VC funding across 544 deals compared with £775m across 136 deals for Berlin, its nearest rival.
Herman Narula, chief executive of Improbable said a major factor in London´s success in attracting investment to technology was its “tremendous tech talent,” with the UK´s capital remaining an attractive place to live and work.
Improbable is among those London companies that have benefited from investment by technology VC giant SoftBank.
“The money investors such as SoftBank are putting into London’s tech companies will benefit the tech ecosystem as a whole, and will play a vital part in building foundational technologies for the 21st century here in Britain,” said Narula.
While London has spearheaded the tech drive, the UK also remains the top destination for technology investment in Europe, according to the report.
Since the referendum, UK technology companies have received £2.39 in investment, more than Germany, France and the Netherlands combined.
At the same time, London´s dominance within the UK was especially pronounced over the first six months of 2017, when the capital´s firms accounted for over 80% of the £1.3bn of technology funding invested in the nation as a whole.
London & Partners claimed that M&A activity involving technology firms had also remained buoyant post-Brexit vote, with the UK boasting over £35bn of investment across 452 deals. This compared to just £8.6bn and £4bn in Germany and France respectively.