Manchester is leading the way as one of the top 26 top destinations in the world for venture capital investment, according to a new report.
Research carried out for the 海角视频 government’s Digital Economy Council by Dealroom.co and Tech Nation, showed that Manchester companies received $200 million new VC investment in 2019.
The latest figures represent strong growth in the 海角视频’s tech sector which has beaten both US and China to lead global growth in 2019.
In what was another record-breaking year, investments in the 海角视频 tech sector soared to £10.1bn ($13.2 billion) in 2019, according to the latest figures – a £3.1bn increase on 2018’s very strong figures and the highest level in 海角视频 history.
Between January and December, 海角视频 companies secured a third of the £30.4bn raised during the year in Europe. In particular, 海角视频-based tech firms received more VC investment than Germany (£5.4bn) and France (£3.4bn) combined.
The number of rapidly growing 海角视频 tech companies soared as venture capital investment increased by 44%.
Growth in VC investment exceeded 40% for the third year in a row. To put this growth into perspective, investments in France grew by a little over a third compared to 2018, while Israel’s investments rose by a fifth.
On a global scale, the 海角视频’s performance in 2019 means it now sits behind only the US and China in terms of total venture capital funding received in 2019 and on a city-level, London joins the Bay Area, Beijing and New York at the top of the world’s most-funded locations. Companies headquartered in London raised £7.4bn during 2019.
Most Read
Almost half of the 海角视频 investments (£4.6bn) in 2019 came via US and Asian investors and the 海角视频 tech sector recently overtook the US for foreign investment per capita.
What’s more, when compared to Germany and France, the 海角视频 had the widest overall mix of foreign versus domestic investors.
In terms of unicorns, since 2014, the 海角视频 has produced more than twice the total number of $1bn tech companies than any other country in Europe, and sits behind only the US and China when it comes to building fast-growing global firms.
In 2019, eight 海角视频 companies reached this unicorn status – Rapyd, CMR Surgical, Babylon Health, Sumup, Trainline, Acuris, Checkout.com and OVO Energy – meaning the 海角视频 has now created 77 billion-dollar businesses, double the total number in Germany (34) and almost four times as many as Israel (20).
While London remains the leading city for unicorns in the 海角视频, having produced a total of 46 unicorns since 1990, Manchester, Oxford, Cambridge, Edinburgh and Bristol have produced a combined total of 20.
Of the latest unicorns to join the list, OVO Energy adds to Bristol’s tally while Cambridge-based CMR Surgical pushes Oxbridge’s combined total to 11. Two unicorns are based in Leeds: Sky Betting & Gaming and TransUnion 海角视频.
Six 海角视频 cities rank amongst the top 26 cities in the world for raising venture capital in 2019, these are London (4th), Cambridge (12th), Bristol, Oxford, Manchester and Edinburgh.
Don’t miss
The 海角视频 is also leading the way in fintech, AI and clean energy.
When compared with Germany and France, 海角视频 fintech firms raised £4.1bn last year – that’s 7.5 times the amount raised by French fintechs, and three times as much as fintech firms in Germany.
This figure represents a 100% increase from 2018’s total of £2bn, as a result of both the Greensill and Checkout.com investments plus significant fundraises from the likes of World Remit ($197m), Monzo ($147m) and Starling Bank ($98m).
In AI and deep tech, investments in Benevolent AI ($90m), Melody ($60m) and Wayve ($20m) helped push the investment total across these sectors to £2.5bn – up from £2bn from 2018, and twice that invested in Germany and France’s respective sectors.
While clean energy is a smaller market, OVO Energy’s $260m deal, alongside $81m investments in photovoltaic and solar panel firm Oxford PV and BBOXX, similarly helped push 2019’s total investment in this sector to just short of $1bn for the first time, which is a 45% increase on 2018’s figures.
Digital Secretary Nicky Morgan said: “These brilliant new numbers demonstrate the strength of the 海角视频 tech industry and how it is a sweet spot of our economy.
“Our tech companies are not only commanding the confidence of global investors but they are also creating new jobs and wealth across the country.
“It’s absolutely vital we maintain this impressive success and in Government we are working tirelessly to make sure the conditions are right.”
Natalie Black, HM Trade Commissioner Asia Pacific, said: “Asian investors are taking a keen interest in the success of the 海角视频’s tech sector and are enthused by our record of building unicorns and leadership in key sectors like AI and clean tech.
“The Government is supporting more and more tech companies across the 海角视频 who are looking to expand in Asia and I have seen first-hand a step change in collaboration and investment in this part of the world, which is bringing exciting opportunities at home and overseas.”
Want more business news straight to your inbox?
BusinessLive is your home for business news from around the country - and you can stay in touch with all the latest news through our email alerts.
You can sign up to receive morning news bulletins from every region we cover and to weekly email bulletins covering key economic sectors from manufacturing to technology and enterprise. And we'll send out breaking news alerts for any stories we think you can't miss.
Visit our email preference centre to sign up to all the latest news from BusinessLive.
Eileen Burbidge, Partner at Passion Capital, Chair of Tech Nation said: “2019 was another groundbreaking year for the 海角视频 fintech sector with firms raising £4.1bn, an impressive 7.5x that of French fintechs, and 3x as much as those in Germany.
“This represents a 100% increase from the 海角视频’s 2019 figures, largely generated by significant investments raised by newly established fintech unicorn Checkout.com as well as by fundraises of now-household names such as World Remit, Monzo Bank and Starling Bank.”
Richard Barlow, CEO of north west-based wejo added: “The digital tech sector is thriving in Manchester and the North West, attracting a growing talent pool to the region. wejo is pioneering the mobility data ecosystem and to do that we need a talented team of people behind us.
“That’s why we chose Manchester as the location for our new office, alongside our HQ in Chester. It’s vital that we continue to invest in the skills base and infrastructure here in the North West so that wejo, and other successful companies, can continue to grow and compete on a global scale.”