LONDON- Overall investments in Britain’s technology sector boosted 44%, up to a record of $13.2 billion pounds in 2019. Such scoped up third of the total European funding all while surpassing the total in France and Germany combined, the UK government’s Digital Economy Council stated on Wednesday.
The United Kingdom is currently tailing behind the United States and China when it comes to venture capital funding parameter. It saw strong improvements whereas its rival saw losses, according to the research by Tech Nation and Dealroom.co.
London now sits with San Francisco’s Bay Area, Beijing and New York at the top of the board when it comes to most-funded locations, data disclosed.
“it was fantastic to see Britain continues to be the best place in Europe to start and grow a tech business, with record-breaking investment and the creation of eight new billion-dollar companies last year,” said Digital Minister Matt Warman.
He added that the country should not remain comfortable with its current status as it still has to secure that government regulations will continue to enforce the technology sector.
“On access to talent, we will have a different immigration policy over the coming years and that will be an important opportunity for us to show that Britain is still very much the right place to start or grow a tech business,” he said in an interview.
In line, the Conservatives are planning to institute an Australian-type of points-based immigration system, and have sworn to cut the total immigration numbers with focus to those with low skill level.
Once the new system was implemented, this will treat EU and non-EU citizens equally as the new accord will require immigrants a job offer before having the rights to come to Britain. Exemptions in a form of special visa will be made available for leaders in fields of science and technology and for those who will take part in mass-oriented services.
Britain is still in pursuit of finding the momentum when it comes to regulating the rapidly developing technology sector, just like formulating policies that would regulate internet, Warman said.
The said research disclosed that London-based tech companies have gained $9.7 billion pounds in total as the amount of finances allotted in early-stage firms soared from $4 billion up to $5.1 billion in 2019.
Technology investor Saul Klein, associate founder of venture capital firm LocalGlobal, stated that it took 20 years for Britain to establish its success and such could be traced back from the introduction of US firms that had created an environment that honed home-grown companies.
“When you look at the number of $1 billion companies - AKA ‘unicorns’ in Silicon Valley tech talk - London has 46 unicorns, Berlin has 12, Paris has 11,” he said. A unicorn is a privately held startup company valued at more than $1 billion.
“In the last 10 years, Britain has consolidated its position through a combination of capital, talent and building these $1 billion companies.”
Eight companies reached unicorn status in 2019 and these are Rapyd, CMR Surgical, Babylon health Sumup, Trainline Acuris, Checkout.com, and OVO Energy. These firms took the overall percentage in the United Kingdom to 77, twice the total in Germany and estimated to quote four times as much as Israel, data showed.