Venture capital firm Atomico has published its latest State of European Tech report, which reveals that the UK has maintained its position as the top European country for tech investment. But why is this the case – and is this likely to continue?
Why the UK is a popular place for tech investment
Earlier this year we wrote a piece explaining why the UK is a popular choice for tech investment. In this piece, we explained the importance of upskilling and reskilling in the tech industry, as well as initiatives that are encouraging more women into this space – all of these things combined showing that the UK is passionate about developing top tech talent.
With the number of tech unicorns and futurecorns rising and the Government appointing experts to review the tech industry and its regulations, there’s a real focus on turning the UK into “the next Silicon Valley”. However, Atomico’s latest report suggests that the UK should expect some challenges.
Strong competition from other nations
Tech investment in the UK is set to fall from $24.7bn in 2022 to a forecasted $12.7bn in 2023: a drop of nearly 50%. Similarly, France is expected to see a 40% drop and Germany a 26% decline over the same period.
Despite worldwide investment figures showing a decline this year, certain European countries are seeing positive movements. The Netherlands, Norway and Estonia, for example, have posted growth of 1.7%, 0.9% and 0.7% respectively over this period.
In the last year, investment from US investors has fallen – particularly in early stage funding rounds. This reduced activity means that further sources of European capital may be required…and post-Brexit, will the UK be able to find the investment that’s needed?
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