The US Investment in UK Tech is Growing- but is Brexit Going to Cause Problems?
Figures have been published by a financial data provider and it shows that US venture capitalists are now investing more in UK entrepreneurs. The number has already risen to a record-level and it would appear that things are looking up. That being said, there may be a sting in the tail when you look at the British economy overall.
An annual event brings together financiers and entrepreneurs from both ends of the Atlantic. The figures that have been released indicate that the stateside investors are actually responsible for $4.4 billion. Out of this number, tech ventures in London make up 77% of the total. The deals that have been completed so far include investments that have been made in digital banks and even cybersecurity. Of course, if you go onto any online casino to play blackjack, then you will soon see that this has been radically changed by the world of tech too, so it’s going to be interesting to see how future investments are changed.
Some people have provided their perspective on why Americans are trying to invest more in British tech. The main reason for this is because they are attracted by the sheer quality of science and they are also interested in pushing boundaries. Silicon Valley coming to the UK ultimately gives everyone the chance to meet up and it also helps them to become much more focused on the future in general.
David Hornik is a partner at US VC August Capital. He has been a regular at the SVC2UK and the way he sees it, is essentially that the UK tech market is being invested in more because of pure ambition. When you look at businesses that were born in London, you will see that they have experienced a huge amount of success and that they have overcome a lot of challenges as well. David has come out to say that he has seen a lot of changes in the UK ecosystem and that he is also very interested in seeing how things are going to change even more. He’s stated that there has always been somewhat of a difference in the UK ecosystem and that companies that are being formed in the Bay area are setting out to make a dent in the planet. British companies on the other hand are locally focused and this interests a lot of people.
Overseas investors are now putting more money into UK tech when compared to ever before and this is certainly a good thing, but how long is it going to last for? Is Brexit going to cause problems? After all, it’s safe to say that it is going to affect trade and it wouldn’t be surprising to see if there were some limitations imposed as well. This could again, cause even more problems which would detract investors rather than encouraging them. What’s going to happen next? Only time will tell.