UK start-ups pull in Silicon cash

UK start-ups pull in Silicon cash

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Silicon Valley investment in British technology firms has hit record levels over the past eight years. In 2017, Californian investors were involved in 74 deals with UK start-ups and scale-ups that were worth a total £1bn – up from 59 deals in 2016, and 21 in 2011, according to Beauhurst/Penningtons Manches.

Software companies are the most popular target for Valley investment, having picked up £2.2bn of funding since 2011. Life science companies were the second-most-popular, pulling £472m over the same period.

Between 2011 and 2017, almost four-fifths of US investment headed to start-up companies in the Golden Triangle, the region of southeastern England around the universities of London, Oxford and Cambridge.

Matt Lerner, partner at US investment firm 500 startups, which invested in eight British firms last year, says “the UK has an abundance of talent, lots of companies accessing global markets – or Europe at a minimum – and its fintech and healthtech innovation is ahead of the Valley.”

Penningtons Manches ranked the top five reasons why US investors are interested in British tech:

1 Technology talent

2 Investable hard science

3 Strong intellectual

4 Common language

5 Lower valuations

Image: Beauhurst/Penningtons Manches

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