The UK tech sector investment hits another record of $15.85 billion this year
The UK tech investment ranks third in the world, followed by the United States and China. This year the investment hit another record of $15.85 billion (€13.3 billion), suppressing India, Germany and France. According to VC record, 2020 investment in the UK rose by 17% than the previous year. Investors' concern about Digital Market Units seems to make the UK tech startups less attractive to potential clients and new collaborators.
Within the first six months, the sector took a massive boost in investments, and the yearly counter will reset with year-end. So, the record is yet to be concluded later on, with more investment piling up as the new highest record. During the pandemic, companies and businesses took a giant leap to jump onboard to migrate with tech platforms. It resulted in three times the investment than the one received the previous year at the same time, which is pretty promising.
Digitalisation also includes factory automation, healthcare tech, and such large niche sectors in general. Today's tech transformation helps manufacturers enhance connectivity and convergence to help businesses at an ecosphere supply chain. With the help of extensive data analysis at a suite level, the ingrained business model helped to cling to solutions reserved by tech adopters. Which gave the sector a considerable boost along with the recognition it's getting nevertheless.
The UK's Digital Economy Council and Tech Nation, Germany and France, counted the numbers and compiled them on a chart. Though numbers are behind the US, it is still growing. FinTech giant Revolut online, video conference business Hopin, Cinch, an online car selling platform, raised so much that it took our attention away. Hopin along raised over €289 million, which added a large number to contribute to the chart.
The investments are funded towards 1400 UK based companies from which all of them are hopefully going to benefit. It may include expanding, merging, acquisition, and such matters at scale. The industry is pretty lucrative and ever-growing. From last year investor statics, more than half of funding (63%) came from overseas, which is 50% more than 2016. Since 2018 the UK has seen a massive rise in investment compared to the US, which saw a 15% increase.
According to VC global investment, even Beijing, New York, and San Fransisco fall behind as London received $10.6 billion. Though the sector is pretty healthy, it is unsure how long things will stay at this state. As government regulations and rules are changing due to various factors, it may impact the future of the investment sector.
According to Digital Economy (Coadec), the industry becomes much more viable to take a hit when smaller companies are barred from acquisition by larger companies. It limits a company's potential growth and makes the future blurry. One of those regulations was for the US digital markets watchdog given the power to "fine" big tech firms, which is a solution at the same time.
AI mapper Zobi, Karakuri for robotics, ANNA (absolutely no-nonsense admin) for Cardiff-based fintech, and many others caught the interest of investors. Acquisition plays a significant role in the tech sector, where more extensive and sustainable companies take care of smaller innovative companies. It makes excellent sense for the people taking the services too, but that power also limits. Mergers and acquisitors hinted that 50% of them would reduce the invested amount if their ability were restricted, while 22.5% suggested they would stop supporting totally.
The report is overwhelming and promising, but government rules may or may not turn matters in other directions.