LONDON, England – London’s technology sector has smashed previous funding records, as the capital’s technology firms attracted more venture capital financing during Q1 2015 than in any previous quarter.
The figures, which are compiled by London & Partners, the Mayor’s promotional company for London, show that the city’s technology companies secured over $682 million in VC financing during the first three months of the year – more than ever before and up 66% on Q1 2014. The previous record was $411.6 million in Q4 2014.
The amount raised by London companies comprises 80% of that raised by all UK companies in the quarter ($856.7m). During the period, significant investments into London were made by some of the most well-known global venture capital funds, including Silicon Valley firm Andreessen Horowitz investing in online payments company TransferWise ($58m) and virtual worlds creator Improbable ($20m).
Eileen Burbidge, London technology ambassador and Partner at Passion Capital, which invests in technology startups, said: “This quarter is the most exciting yet in London’s tech development, as we have seen companies based in the capital attract substantial new investments from some of the world’s most tech-savvy and influential investors.
London is one of the most electrifying tech hubs in the world, with companies and investors all brought here by the city’s ideas and entrepreneurial spirit, as well as its talent and access to markets.”
The figures indicate that London-based technology start-ups are proving they can access the international capital they need to grow into major global companies, said Sherry Coutu, the well-known entrepreneur and investor.
Ms Coutu said: “London has shown that it can produce exceptional companies that grow to scale quickly and become significant players on the international stage. Global investors are increasingly tapping into this ability, providing the funding and access to export markets that companies need to ‘scale up’. This is powering the UK’s entire economy through creating growth and new jobs both in London and beyond.”
WorldRemit, a London-based company that enables online money transfers, raised the most funding in the period, securing a $100m round led by Technology Crossover Ventures.
Ismail Ahmed, founder and CEO of WorldRemit, said: “London is the ideal place to start a fintech company, as it is a technology hub as well as a financial services hub. There is an abundance of world-class talent in the city, and the convenient time zone, which enables communication with Asia and the Americas in same working day, is an attractive factor for us as an international money transfer service.”
Other London-based tech companies to announce significant funding deals in Q1 2015 include fashion retailer Farfetch ($86m), augmented reality advertising firm Blippar ($45m), and music technology company Shazam ($30m). The Mayor of London, Boris Johnson, also visited the US East Coast during the quarter and showcased London’s tech expertise and leading companies to leading US figures, investors and startups.
London investment by quarter
Amount $m 2010 2011 2012 2013 2014 2015
Qtr1 43.55 139.68 168.39 232.94 411.00 682.50
Qtr2 10.2 86.2 92.15 115.56 320.15
Qtr3 13.94 25.44 45.17 214.82 207.64
Qtr4 33.02 50.18 166.82 193.52 411.62
Total 100.71 301.5 472.53 756.84 1350.41 682.50
