UK Markets open in 4 hrs

European investors shrug off Brexit with record UK tech investment

·Finance and policy reporter
File photo dated 29/05/14 of Cambridge University buildings (front to back) the Grand Courtyard of St John's College, Trinity College, Senate House and the Old Schools, Gonville & Caius College and Kings College Chapel.
Cambridge, pictured, received significant investment. Photo: Press Association

European investment in UK tech firms hit a record high last year, despite a year of huge uncertainty over Brexit’s impact on Britain’s economy.

New data suggests European funds piled £1.89bn into Britain’s tech sector in 2018, up from £1.66bn the previous year.

The research, by law firm Penningtons Manches,showed 70% of investment was in firms based in the so-called ‘Golden Triangle’ of London, Oxford and Cambridge.

The law firm said it was a positive sign that almost 80% of deals were even completely new relationships, suggesting strong confidence in the prospects and resilience of the sector.

““Our research has shown that despite the impact of Brexit, the UK and its leading technology companies continue to be an attractive proposition for overseas investors seeking to deploy their funds into businesses with innovative and ground breaking technology,” said Rob Hayes, head of tech at Penningtons Manches.

READ MORE: Europe’s fastest growing countries in 2019

“When it comes to the creation of cutting-edge technology, the UK is well and truly established on the world map,” he added.

The research suggested only a marginal increase in the actual number of deals however, up from 149 in 2017 to 150 last year. But the value of the deals was up by 14%.

It also highlighted that the USA remains the largest overseas investor in UK companies, particularly in larger deals.

Software companies received the bulk of all investment in tech, followed by life sciences, according to the data, collected by Beauhurst.

READ MORE: 41% of rich investors think Brexit good for UK economy

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting