London Lure for Tech Firms Bumped Up
Published By : 03 Apr 2015 | Published By : QYRESEARCH
London’s tech aura continues to grow in 2015. The Alpha++ city is in no mood to stop its progress to becoming a global tech hub, with its technological firms continuing to draw in venture capital financing at a growing rate. London’s tech companies acquired financing of US$682 million (more than GBP460 million) in the first quarter of 2015. To put this figure in proper context, this represents a phenomenal 66% increase on the sum acquired in the first three months of 2014. It is more than the total sum acquired by London’s tech companies in the whole of 2012. This illustrates the massive growth achieved by London tech companies in the last few years. The previous quarterly record was the amount of US$411 million set in the last three months of 2014, more than US$250 million in deficit of the new record.
Online financial transfer giant WorldRemit led the surge in capital investment acquirement, bagging a US$100-million round. Blippar, Shazam, and Farfetch also bagged significant investment. The threefirms specialize in augmented reality advertising, music tech, and fashion, respectively. Fashion giant Blippar credited London’s favorable environment for the company’s rapid growth. AmbarishMitra, Blippar’s CEO and cofounder, credited London foir the company’s expansion to 10 offices in 6 countries.
London’s business-conducive environment can be attributed at least in part to the British government’s Seed Enterprise Investment Scheme. This scheme provides a 50% income tx cut in the initial stages of investment up to GBP100,000, loss relief, and capital gains. This allows firms to mitigate risk by investing in multiple schemes.
Naturally, Eileen Burbidge, London technology Ambassador, described the first quarter of 2015 as being the most exciting one in the history of the British capital’s tech development.