Investment in the UK after the Brexit vote

Investment-in-the-UK-after-the-Brexit-vote

 

Global venture capital firms have already made dozens of new investments in UK’s start-up companies in recent weeks, despite UK’s decision to leave the European Union.

New data collected recently by investment database Pitchbook for London & Partners, the promotional body for the London Mayor’s office, has shown that UK start-up companies have attracted $200 million of funding across multiple deals since the EU referendum during 2016

Even as UK start-ups face an uncertain future post-Brexit, there are signs that they are doing particularly well. Data released by Dealroom.co earlier this year has shown that the country’s start-ups has raised £818 Million in the first quarter of 2017 – a slight dip from 2016 but an overall increase on the previous three quarters. The most popular sectors include fintech, finance, mobile and software-as-a-service as well sub-sectors like robotics and drones.

The report, which focused on venture capital investments, rather than mergers and acquisitions, did not include an announcement that Japan’s SoftBank has purchased Britain’s biggest technology company, Arm Holdings, for the sum of £24,3 billion.

London’s Mayor Sadiq Khan has stated: “This is further proof that London leads the way when it comes to technology and, because of its diversity and entrepreneurial spirit, continues to attract investment from across the glove, this investment in the capital shows that London is open for business, open for new ideas and will continue to welcome the best talent from around the world.”

Eileen Burbidge, a partner at the venture capital firm Passion Capital, said London “remains the biggest tech centre in Europe and continues to attract the best talent and companies from all over the world.”

In a vote of confidence in Brexit Britain, UK FDI inflows soared to £197 billion in 2016 this represents the highest level of inflows since 2005.

Britain has also climbed above Ireland, Switzerland, the Netherlands and France to become the top destination across Europe and only second to the US.

The UK’s finance industry drew 99 foreign direct investment projects in the recent year. The continuing lure of Britain for financial services came in the face of the vote to leave the European Union a year ago. EY found that 69 of the financial projects the UK attracted from foreign investors last year went to London, compared with just 19 for Pairs and 12 for Frankfurt.

The US and China are currently the biggest sources of foreign direct investment in financial services in Britain.

In July 2017, the UK government helped to secure a more than £240 million-pound investment from Toyota in its English plant with a letter reassuring the Japanese carmaker over post-Brexit trading arrangements.

At the present time, there are signs that regardless of Brexit, investors are still flocking to the UK and as the numbers show this trend will continue for the foreseeable future.

 

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Tags: brexit Britain business London

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