Investors in the United Kingdom decided to put their venture capital into cryptocurrencies in 2018. According to London & Partners and Pitchbook, crypto companies managed to raise over £200 million in the forms of ICOs and venture capital.
The most substantial investment in 2018 was the £61 million raised by Bitfury – a blockchain technology company with eight locations around the world.
Two thousand eighteen was an extraordinarily successful year for crypto investments, marking a 1000% increase from 2017, where crypto companies managed to get only £19.11 million in venture capital.
According to the data, London’s technology startup sector is accounting for 72 percent of all tech investments in the UK. Tech companies in London managed to get around £1,68 billion of the total £2,49 billion investments in the tech sector in 2018.
Data from Pitchbook also show that the British capital still is the preferable location for tech investors. The venture capital poured into London’s tech startups is almost double the money invested in Berlin (£963,5 million), Paris (with £797 million in venture capital) and Stockholm (£224 million). Rajesh Agrawal, London’s Deputy Mayor for Business, stated that Brexit would not stop entrepreneurs from investing into London’s tech sector, because of the openness and diversity of London’s tech industry.
Artificial intelligence (AI) is also marking a considerable increase in venture capital, with £736 million in investments in 2018. Numbers are showing 47 percent increase from 2017 where AI companies received £499 million in venture capital.
Eileen Burbidge, a well-known figure in the fintech investment world, stated her positive stance that London is becoming a number one spot, where tech startups can evolve into game-changing businesses. “London is the best place for innovations and investors are starting to connect the city as the leading center for fintech and blockchain startups. I believe that AI and Fintech sectors will see further venture capital recognition and will become a massive part of England’s future”, Burbidge also stated.
Other cities and countries in the EU are also seeing significant boosts in venture capital investments in the tech sector. Berlin and Germany cemented their second place in the ranking, with Paris and France not so far behind, but their growth is not so significant compared to the UK.