UK tech firm surpass China & India in terms of tech investment in 2022

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As per a recent report, more than 950 tech companies based in the UK have raised £12.4 billion ($15.01 billion) in the initial 5 months of 2022 against a framework of slow growth in the public markets worldwide.

The UK tech firms have raised a record £9 billion ($10.9 billion) in the first three months, up from the £6.3 billion ($7.9 billion) increase in the first quarter of 2021.

In that period, the UK outperformed China and India for tech investment, remaining behind the US globally. However, despite witnessing a lucrative first quarter, there are indications that the UK's private investment market could begin to slow down.

Unlike last year, investors globally are now taking a more agile approach following the increasing interest rates and economic ambiguity caused due to Russia's invasion of Ukraine.

Startups that have raised money earlier at eye-watering evaluations are now expanding at lesser valuations or are currently facing challenges to raise capital. US investors have poured more capital into the UK tech companies than they did for the whole year of 2021.

The growth has been already constant outside of London, with Oxford, Cambridge, and Abingdon among the top 20 European futurecorn hubs.

Taavet Hinrikus, the co-founder of British fintech firm, Wise, said that he has been investing in startups across Europe for almost 15 years. He said that this is the start of a new edge for technology, and he wishes to support the upcoming 100 companies that will be established in the UK and will be growing as global behemoths.

Furthermore, fintech is expected to be the leading tech sector in the UK, with startups fetching half of the country's VC funding this year.

Source Credit - https://www.uktech.news/funding/uk-tech-startups-raise-12bn-market-slowdown-20220613