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U.K. Tech Investment Quadruples as Deals’ Growth Outpaces Europe

U.K. Tech Investment Quadruples as Deals’ Growth Outpaces Europe

According to research from the British Business Bank, equity investments in smaller U.K. “deep tech” firms increased nearly threefold in the last five years, driven by transaction growth that exceeded gains in the United States and the rest of Europe.

According to the research, deals grew by 78 percent in the United Kingdom, compared to 66 percent in the United States and 73 percent across the continent. Despite this, the amount obtained by selling shares to investors fell considerably behind that of the United States, where the market is more mature, with the average small British IT firm receiving around 24 million pounds ($33.8 million) after six rounds of fundraising.

The new statistics come in the wake of an increasingly more investment-conscious UK population, where more people could be looking for ways into investing 1000 pounds through different start-ups. A £1,000 investment in the UK today is a smart way to save for a better future. Interest rates are at an all-time low, but with regulations loosening and companies preparing to emerge from a lengthy slumber, this should be a period when the economy starts to pick up and soar to previous heights.

If you’re searching for the best methods to invest 1,000 pounds, you may go with growth stocks or an ETF to diversify your portfolio. Trading gold or copy trading are two additional ways to invest 1,000 pounds. You may also get into the alternative financial landscape by purchasing cryptocurrencies like Bitcoin.

But according to the study, technology investments helped drive overall small-business fundraising in the United Kingdom to 8.8 billion pounds last year, the highest since records began in 2011. This year’s first-quarter fundraising also set a record high, with firms receiving 4.5 billion pounds in funding.

“The levels of investment vary widely by industry, with the U.K. ‘s thriving tech sector remaining the most attractive to investors and accounting for 46% of total equity investment in U.K. smaller businesses,” according to the British Business Bank.

As investors pour more money into the market, technology firms’ values are skyrocketing, and British start-up fundraising rounds have topped the hundreds of millions of dollars. CMR Surgical Ltd., a robotics company, is aiming to raise more than $200 million in a deal that could push its market potential to as much as $2 billion, according to people familiar with the situation. Babylon, a London-based health-care app that raised $550 million from investors two years ago, agreed to combine with a blank-check company this month for a $4.2 billion value.


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by Dirk DeBie // Contributor to Businessing Magazine.

Opinions expressed by contributors are their own.