London: Anchoring European Technology Investment

Library House was commissioned by the g2i (gateway2investment), the London investment readiness programme funded by the LDA, to produce an authoritative report on the state of technology investment in London, relative to the rest of the UK and Europe, drawing on our comprehensive data on venture-backed, technology companies.

London is well-known to be one of the key global financial centres across all areas of finance including private equity investing, but the large value of these transactions masks a highly active venture capital industry in the capital. Indeed, the report shows clearly that London is by far and away Europe's leading centre of venture capital and technology investment. Investment levels in technology companies in the UK's capital are on a par with totals for the whole of France and Germany.

Companies in London are shown to be more successful at raising capital than those elsewhere in the UK, on average receiving 40% more capital than the national average, mainly though larger early stage institutional rounds.

However, London cannot rest on its laurels. London-based companies fare less well than the rest of the country during the earliest investment stages. For both Grants and Awards and deals led by private individuals, London-based companies receive less investment than the other regions. And, in global terms, London still has significant room for growth and improvement. Silicon Valley attracts approximately ten times more venture capital investment than London.