$3.7 billion invested in UK tech sector

21 Aug 2019

The UK’s Digital Economy Council and Tech Nation highlighted a higher investment in the British tech sector from the U.S. and Asia. The increase took place during the period between January and July, and it marked more investment than the annual amount in 2018.
 
A weakening pound has enabled the UK tech firms to attract several Asian investors, with Japan and Singapore being the biggest traders. The pound is currently at a two-year low with the dollar. Aditya Mathur, founder and managing director of a company in Singapore said, ‘I've seen a lot more requests from UK start-ups tapping Asian markets capital financing in comparison to a year ago… They typically want access to the Asian market that is large and diverse, and for that they need an Asian investor to help them understand these markets, and also provide the kind of financing they're looking for.’
 
At the moment, Asian traders are suffering the consequences of the trade war. Dealroom founder and chief executive, Yoram Wijngaarde, stated ‘Foreign investment into both the US and Chinese tech sectors has gone down because of the trade war and because Europe has provided several attractive investment opportunities lately.’ He added, ‘The UK provides an attractive opportunity for funds looking to grow their investments.’

Throughout the first 7 months of the 2019, the UK tech sector has gained around $3.7 billion, with $1.8 billion being invested by Asia. The U.S. has put $2 billion in investments in UK tech firms. In 2018, the yearly investment totalled to $2.9 billion.  

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