Justin said:
"The sheer weight of investment into the UK tech market is a testament to the fact that the UK remains a key hub for tech talent, attracting investment in the sector at a disproportionally high level when compared to larger jurisdictions. Whilst foreign investment levels were high before the spectre of Brexit loomed, the fact that they remain high is also reflective of foreign exchange rate volatility – the pound trading at a several year low and providing an additional stimulus to overseas investors.
"It remains the case that the availability of venture capital for startups in Britain is small in contrast to the money available in the US for finance primary, secondary and tertiary buyouts. The US economy is circa 6.5 times the size of the UK and naturally has deeper capital markets, but the funds available in the USA for startups generally and tech in particular, dwarf those in the UK by a massive multiple; much greater than the relative difference in size of the US and UK economies.
"Whilst concerns over privacy and personal data abound, the rapid growth of large tech companies such as Deliveroo, Uber and others has demonstrated that investors remain bullish in their quest to back the next "unicorn" and that they consider the technology sector to be relatively future proofed from the barriers to entry that other sectors may be presented with as a consequence of Britain leaving the EU."
For more information, please contact:
Nahidur Rahman, Senior PR Manager
Tel: +44 7851 796943
Email: nahidur.rahman@dwf.law
Alternatively, contact the DWF press office on press.office@dwf.law
