While UK VC investment may be up, European funding has fallen however. The KPMG Venture Pulse Q1 2017 revealed UK VC investment over the quarter reached $1.02bn, having dropped to under $881m in Q4.
That was achieved despite a lower number of completed deals, with 196 secured versus 219 the previous quarter. KPMG suggested the “robust levels” of UK VC investment signals optimism and confidence for British business this year despite Brexit.
“UK VC investment activity is at robust levels and this should be a cause for optimism in 2017,” said Patrick Imbach, co-head of KPMG Tech Growth.
“It’s clear that, despite a dynamic political and economic environment, capital remains available for those UK startups that are able to articulate and demonstrate their value proposition.”
Imbach pointed to financial services, life sciences and biotech as key sectors where startups are securing UK VC investment and highlighted firms such as Currency Cloud, Funding Circle and Atlas Genetics.
He added: “Tech giants are also clearly confident in post-Brexit Britain with Apple and Snap having chosen London for their international headquarters. I expect 2017 UK VC investment to continue at a healthy level.”
While UK VC investment rose in Q1, there was a fall in VC investment across Europe overall, reaching $3.4bn, which was attributed to fewer angel and seed rounds. Meanwhile, deal volume was at its lowest for five quarters.
With Article 50 triggered in March, the report said it could have impacted UK VC investments in March, as well as Europe – and may continue to. It was also noted, however, that normal activity of investors may resume now that the formal process to leave the EU has started.
Comparatively, global VC investments increased to $26.8bn in Q1 2017, compared to $23.8bn in Q4.