Startups eye bigger slices of the pie as venture deals scale up
Venture capital investment into UK startups in the first three months of 2019 was around the same level as last year, as investors turned their focus to later-stage deals.
More than £1.2bn has been invested since the start of the year across 161 deals, according to data published today by KPMG.
Comparatively Germany was hit by a fall in investment levels year-on-year to £1bn, while France had its largest quarter of investment to date at £760m.
Read more: London startups to take fintech unicorn crown from San Francisco
Fintech, biotech and healthtech were the most popular sectors for venture capital firms.
Digital banks earned the most attention, as Starling Bank and Oaknorth closed major rounds.
KPMG’s UK innovative startups director Tim Kay said: “The UK has a robust startup ecosystem due mostly to its diversity – which keeps investors coming back.”
Read more: Women-led startups win under 10 per cent of VC funding
“Providing Brexit uncertainty can be curtailed, deal volumes should rebound as VC investors won’t want to sit on unspent cash and the UK still remains an attractive investment location for innovative businesses.”
The figures come after it was revealed that London is on track to take the fintech unicorn crown from the world's current leading hub, San Francisco.
Out of the 29 fintech unicorns globally – companies with a valuation of more than $1bn (£765.5m) – nine are based in the Californian hub, while seven are housed in the UK capital.