UK returns to top spot for venture capital investment

A report from KPMG has shown that the UK has once again taken the top spot for venture capital (VC) investment in Europe.

The Big Four accountancy firm’s Venture Pulse Q2 2018, which explores global trends in the VC market, showed that £1.55bn was invested in businesses in the UK across 244 deals in the second quarter of 2018, up from just over £1.1m in the first quarter.

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Out of the top ten deals completed in Europe over the past three months, six were done in the UK, with digital banking firm Revolut seeing the highest investment at £188m. Liberis was also among the six firms, with £61m being invested in the business finance firm.

London led the way for VC funding, with the second quarter of the year seeing the third-highest quarterly amount of venture capital ever invested in the city.

Among the most popular areas for investment globally in Q2 2018 were fintech, cybersecurity and artificial intelligence, with investment in these areas expected to increase significantly over the rest of the year.

Critical

Commenting on the trend of businesses investing in AI, Patrick Imbach, Head of KPMG’s Innovative startup practice, said: “AI is absolutely critical to the future success of the UK economy, particularly around the Government’s Industrial Strategy. The UK has a track record in creating some of the most innovative AI businesses in the world; however, we are seeing too many of these businesses exit too early.”

He added that for the UK to be a global leader in artificial intelligence, it is crucial to get more funding and infrastructure in place to help businesses that are exiting too early to remain independent for longer to boost their growth.