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UK Tech SMEs received 27% more equity investment in 2019

UK Tech SMEs received 27% more equity investment in 2019

UK Tech SMEs received 27% more equity investment in 2019

Equity investment in UK technology firms increased by 27% to £4bn in 2019, according to figures published today by British Business Bank.

It is the largest amount invested in private UK tech shares since the government-owned development bank began tracking equity investment in 2011.

The Small Business Equity Tracker showed that the tech sector scooped up 47% of all equity investment in UK small and medium-sized enterprises (SMEs) last year. This was made through a total of 691 deals.

Total equity investment in UK SMEs across all sectors came to £8.5bn, reflecting the large presence of technology SMEs in the country.

Software companies attracted the most equity investment, at £2bn, while the life sciences netted investment worth £540m.

Software as a service (SaaS) companies were particularly attractive among investors, with deals in that vertical generating £2.5bn in investment.

The UK’s successful fintech sector also proved a popular choice, with £1.8bn invested across 193 deals.

Most deals were made in London (52%), but the number of deals in areas outside of the capital increased compared to the previous year.

“This was a clear sign of investor confidence in UK smaller businesses located across the country and their potential for growth as well as the strong fundamentals of the UK economy as a place to start and grow a business,” said Keith Morgan, CEO, British Business Bank.

Equity investment in the UK’s tech businesses increased by 27 per cent to £4bn last year, the highest amount since records began in 2011, the British Business Bank has found.

The state development bank’s annual small business equity tracker report showed the UK’s thriving tech sector remains highly attractive to equity investors, accounting for 47 per cent of total equity investment in UK small- and medium-sized enterprises (SMEs) through 691 deals in 2019.