London resilient at top of European tech investment table despite COVID

UK

London retained its position as the top European destination for tech venture capital in 2020, with levels near the record sum of the year before despite the impact of COVID-19, according to research from Dealroom.co and London & Partners.

Start-ups and growth companies brought $10.5 billion worth of financing, accounting for at least a quarter of all investment into Europe and three times the level in Paris, Berlin and Stockholm, the research found.

Some of the biggest deals involving London companies added a $500 million financing round for London FinTech firm Revolut, a $400 million deal to get electric vehicle maker Arrival and two funding rounds totalled some $527 million to renewable electricity company Octopus Energy.

The British capital is also home to more unicorns – start-ups using a valuation exceeding $1 billion – than anywhere else in Europe. At 43, it has more than Paris, Berlin and Amsterdam combined, according to the research.

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Dealroom said it had recognized 81 potential future unicorns located in the city.

Eileen Burbidge, partner at London VC company Passion Capital, stated action quickly rebounded following the jolt of this pandemic in the first half.

“In the second quarter capital flows and investment pretty much stopped… all the way up and down the value chain,” she said in a interview.

“Towards the end of Q3 things started to pick up again, whether people were getting used to a new normal or having confidence in what the potential outcomes could be by that point, and activity in London picked up really quickly.”

The pandemic had underscored the value of fast-growing businesses such as fintech – a strength for London – health technology and venture, for example collaboration tools, ” she explained.

Passion Capital, an early stage investor in Monzo and GoCardless, continues to be seeing pitches back into pre-COVID levels or higher, ” she said.

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“Entrepreneurs are continuing to pitch, I do think there’s still a lot of investment capital available,” she said.

The team at Platform Executive hope you have enjoyed this news article. Translation from English to other languages via Google Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Paul Sandle. Editing by Rosalba O’Brien.

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