New data shows that 2019 is a record year for US investment in London and UK businesses.
American investors have been involved in $4.4bn worth of deals into UK companies this year so far, with London accounting for 77pc ($3.4bn) of all VC investment.
US investors still look to the Big Smoke as the scale-up capital of Europe as it produces high volumes of unicorn companies. Over the past five years, firms based in London have received substantially more funding from US VCs than any other European business hub. Bay Area VCs have invested almost double the amount into UK companies ($10.7bn) in that time than in Germany ($5.95bn) and France ($2.87bn).
Country Total amount raised ($)
United Kingdom 10,798.55
Germany 5,955.22
France 2,874.33
Switzerland 1,292.30
Spain 1,028.04
Ireland 1,021.10
Netherlands 798.37
Finland 569.63
Austria 399.68
Findings coincide with this week’s Silicon Valley Comes to the UK event series, a gathering of investors, entrepreneurs and CEOs from the UK and Bay Area.
Sherry Coutu CBE, angel investor and co-founder of SVC2UK, said: “While Brexit has created some uncertainty, investors from the US and further afield continue to look to London as Europe’s leading tech hub because it is home to world class talent and abundance of innovative companies – especially in areas such as fintech, cybersecurity and artificial intelligence.”
Which companies have received funding?
Major funding for UK companies which have involved US investors in 2019 include a $144m series F funding round for London-based fintech, Monzo (led by Silicon Valley investment firm, Y Combinator). Larger deals are also expected this year including a $75m series E funding round for online payment service, GoCardless.
A few American business giants are set to move into London too:
- Apple will open a new London campus in 2021 at Battersea Power Station for 1,400 staff
- Google is opening a new HQ in King’s Cross for up to 4,500 staff
- Facebook will be leasing three new offices in the London King’s Cross area for up to 6,000 staff. The capital has also been chosen as the company’s base to develop WhatsApp payments
As for UK business growth, Revolut, Monzo and TransferWise announced plans to launch their services in the US during 2019.
Sherry Coutu will appear on the Small Business Snippets podcast in the new year. In the meantime, you can listen to previous episodes with Nicola Horlick, Piers Linney, Caprice and more on SmallBusiness.co.uk.
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