Amid the EU referendum, there was high level of uncertainty among British businesses and investors, but also those overseas with a vested interest in UK enterprise.
Following the official confirmation of a Brexit, we’ve heard a great deal of campaigning to reverse the decision. Indeed, Richard Branson was particularly vocal on his position.
“If we carry on down the current path, we’re taking the country to a recession very rapidly. It’s been a bloodbath,” he said. “It’s going to be devastating to employment in Britain, devastating to wages, devastating to business, devastating to infrastructure.”
According to Dow Jones VentureSource findings, however, the UK held onto its position as the most favoured destination for investments during the second quarter. The country secured some €870.1m across 115 deals and accounted for 29 per cent of all funding over the period.
Meanwhile, Germany secured the second spot with 80 deals and a total of €547.9m invested, amounting to an 18 per cent share.
Newly appointed prime minister Theresa May was in Germany on the 20 July and spoke alongside the country’s chancellor Angela Merkel about Brexit developments.
“Of course, the nature of our relationship is going to change as the UK leaves the EU, but we both want to maintain the closest possible economic relationship between our countries and I believe that is what German and British businesses want too,” she said.
“So it’s good that we start from such a strong foundation and a position where both our countries believe in liberal markets and free trade and these should be the principles that guide us in the discussions ahead.”
Luxembourg secured the third position, meanwhile, and raised €300m – a ten per cent share, which was followed closely by France in at fourth with a €291.8m raise.
On the whole though, VC funding across Europe hit €2.51bn in Q2 2016. This was down by 16 per cent on Q1 2016 – perhaps a result of the general feeling of unease across the continent with the Brexit talks – but grew 17 per cent year-on-year compared to Q2 2015.
For sectors, it was consumer services that generated the most investment attention in Q2, attracting €1.1bn across 132 deals. That’s equivalent to 36 per cent of the total invested and 29 per cent of all deals during the period.
Following consumer, it was business and financial services that clinched the second place for investment. The industry raised some €722.4m, down four per cent on Q1, over 124 deals.
Given the tech industry’s continued popularity, it was the IT sector in third place as it received €605.7m across 107 deals.
With David Cameron out, how will new prime minister Theresa May impact UK business?
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