Funds raised among London’s tech firms boomed in 2020 amid a recent surge in initial public offerings (IPOs) from the sector.
According to a report from Tech Nation, a UK growth platform for tech start-ups, UK tech venture capital (VC) investment hit a record high in 2020 of US$15bn despite the challenges of the pandemic, while deep tech investment saw growth of 17.4%, the highest rate of growth globally by country.
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The report also highlighted a growing interest in the UK’s tech sector from international investors, with 63% of investment into tech firms in 2020 coming from overseas compared to 50% in 2016.
The upswing in interest in London’s tech scene follows news that several tech ‘unicorns’ have chosen the city’s stock market as their listing location.
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Such firms include takeaway delivery app Deliveroo, as well as cybersecurity group Darktrace and consumer review site Trustpilot, all of which are expected to see market valuations reaching into the billions of pounds.
The planned IPOs also follow a number of successful floats from tech firms in 2020 and the first months of 2021.
THG PLC (LON:THG), the online retail specialist formerly known as The Hut Group, raised around £1.9bn in its IPO last September, while online greeting card retailer Moonpig Group PLC (LON:MOON) floated in February with a market cap of £1.2bn which has since risen to £1.45bn.