Venture Capital

London remains dominant for European venture capital investment according to a new report compiled by PitchBook. London attracted deals worth £2.45bn; almost five times more than second placed Paris, reinforcing the UK capital’s position as the undisputed leading destination in Europe to grow a tech business. The biggest investments included: Improbable (virtual reality: £391m), Deliveroo (delivery: £364m) and Truphone (telecoms: £255m). However, the biggest investment category was Fintech, which commanded £1.3bn. Although only a small subset of total private equity investment, VC’s focus on London is a strong sign of confidence in its innovation ecosystem. In 2016 more than 650,000 business were started in the UK, with 205,000 of these being in London, and next placed Birmingham registering 17,000 according to data from the Centre for Entrepreneurs (however, many of these will be inactive shells). Data from Techstars indicates an average size of 5 employees for a typical start-up tech business.