Venture Capital in the UK
The Venture Capital market in the UK has built up considerable scale over the last decade. Why has it grown so swiftly and what does the future hold?
Today, the UK has a strong claim to have evolved the most sophisticated ecosystem in Europe for young start-ups to grow: education, tech hubs, a population of early adopters, and plentiful funding right up the value chain.
Despite the challenges from Brexit in terms of attracting talent and ease of doing business, the UK is likely to remain the centre of gravity for Europe’s venture capital scene.
The UK’s strong venture capital scene has created a fertile environment for disruptive tech companies. Today, it is a world leader in the financial technology (FinTech), enterprise technology, e-commerce, property, and travel sectors. Funding Circle, DeepMind, ASOS, Zoopla, Kano and Skyscanner are examples of UK success stories in each of these sectors.
The UK is likely to continue to be unique in Europe for the presence of capital funds which can provide funding from early to late stage, for its wealth of technology and investment talent and experience, for its variety of investment structures, and for its entrepreneurial culture. These advantages have been built up over many years, and will take a long time for other countries to emulate.