UK tech companies ahead of US in attracting foreign investment

UK tech businesses have secured a total of £5.5bn ($6.7bn) in foreign investment since January 2019, with £3.1bn of it originating in the US and Asia, government data revealed.

A study for the Department of Digital, Culture, Media and Sport (DCMS) revealed that in per capita terms the UK had overtaken the US as the preferred destination for investment.

Funding came mostly from the States itself and Asia and was funnelled into investments in so-called unicorn companies that valued at over $1.0bn each, such as a renewable energy company Ovo Energy and takeaway business Deliveroo, according to the new research conducted by Tech Nation and Dealroom.

According to the Guardian, other UK firms that had secured major investments year-to-date included supply chain finance firm Greensill and fintech outfit Checkout.com.

Nicky Morgan, the culture secretary, said: "These fantastic figures show the confidence overseas investors have in UK tech, with investment flows from the US and Asia at an all-time high.

"We have a long-standing reputation for innovation and the statistics endorse our reputation as one of the best places in the world to start and grow a digital business."

According to the same research, Britain's digital economy employed 2.1m persons, ahead of sectors including hospitality and financial services at 1.3m and 1.2m, respectively.

Morgan predicted Britain's digital sector was on course to attract over £9.09bn-worth of investments in 2019.

Eileen Burbidge, chair of Tech Nation, said: "Investment in the UK tech sector has been steadily rising for years and as these latest figures demonstrate, the momentum is increasing.

"It is incredibly gratifying to see that in addition to domestic and European investors, British tech innovators are also attracting US and Asian investor attention and allocation."