Booming London Technology Sector Attracts Record Funding From US Investors

NEW YORK, February 11, 2015 /PRNewswire/ --

American investors are putting more money into London-based technology companies than ever before, according to figures revealed by the Mayor of London today during a trade mission to the USA.

The figures compiled by London & Partners, the Mayor's promotional company for the capital, show London tech firms attracted $795.2m from US investors in 2014, more than doubling 2012's record of $296m. Investment from the US into the UK was a record $1.35bn, compared to a previous high of $582m in 2012.*

London firms attracted $1.4bn in venture capital funding in 2014, with US funds responsible for over half of all new funding. The figures were announced by Mayor of London, Boris Johnson at an investor event in New York hosted by London & Partners alongside Tech City UK and Technology is GREAT campaign.

Mayor of London, Boris Johnson, said: "As the digital capital of Europe, London is clearly the place to create fast-growing tech companies, and our flourishing tech sector has caught the eye of US investors. London's talent is attracting global investment, enabling our innovators to turn their ideas into companies that create jobs and economic growth in London."

Gordon Innes, London & Partners CEO, said: "London and New York are world-leading tech hubs where innovative companies are producing technologies that are changing the face of industry. For international companies expanding and investing overseas, London is their first choice. Over the last decade the city has attracted more HQ investments than Paris, Berlin and Dublin combined, with companies investing more than £4 billion and creating more than 20,000 jobs in the city."

2015 has seen further investment from the US into London. Fintech company TransferWise recently announced $58m of investment from Andreessen Horowitz, while music tech company Shazam announced investment valuing the company at over $1bn.

Further funding announcements were confirmed today with the Mayor telling investors that TransferWise is to open US offices and London-based cyber-threat intelligence service, Digital Shadows, has attracted $8m of new VC funding.

Taavet Hinrikus, TransferWise co-founder, said: "London's status as a tech and financial hub means we've been able to grow the company from just my co-founder and I to a company of 250 employees, processing over £3bn worth of customers' money in four years."

Alastair Paterson, Digital Shadows CEO, said: "The potential of Digital Shadows has been recognised by investors in the UK and US. We have been able to grow from a London-based start-up into a company that is taking on global challenges in cybersecurity."

Barclays also used the event to launch its fintech accelerator program in New York. The Barclays Accelerator, powered by Techstars, will open in July 2015.

At the event the Mayor demonstrated new technology from London start-up SAM Labs. SAM building blocks wirelessly connect to your computer to build Internet of Things devices, allowing people with no understanding of coding to construct moving machines.

*Based on data from CB Insights.

SOURCE London & Partners