Monday 06 October 2014

London-based technology firms are attracting record levels of venture capital investment, as funds from around the world look to capitalise on the growth of companies in London’s booming technology sector, according to new figures released today.


A new quarterly barometer measuring venture capital investment into London’s technology companies – published by London Partners, the Mayor’s promotional company for London – shows that technology firms in the capital have attracted more than $1 billion in investment so far in 2014.¹


The $1.021 billion raised by London tech firms during the first three quarters of this year is almost 30% more than the previous full-year record of $719 million raised during 2013. It is also more than ten times the amount raised in full-year 2010, highlighting the success of initiatives aimed at fostering the growth of the capital’s technology cluster, such as Tech City and London Technology Week.


The figures also demonstrate the attractiveness of London and London-based technology firms to the international investor community.


The Mayor of London Boris Johnson said “These figures show, without any question, that this is an incredible period for technology firms in our city. Tech is blossoming and our reputation for innovation and discovery, allied with outstanding talent, is attracting record breaking levels of investment from around the globe.” 


Eileen Burbidge, Partner at Passion Capital, which invests in technology startups, and London technology ambassador, said: “In just four short years the amount of venture capital funding going into London’s technology firms has increased more than ten-fold. That’s an astonishing rate of growth, which is testament to the exciting innovation that’s happening in London.”


Venture funding deals in London range from small seed capital investments through to later stage venture deals. As the market grows and matures, companies find it easier to access larger amounts of growth funding. So far this year three companies –, and Funding Circle – have all successfully completed funding rounds in excess of $50 million.


The largest deal completed during the third quarter was a $65 million series D funding round by Funding Circle, the peer-to-peer lending network, in a deal led by Index Ventures with participation from existing investors, Accel Partners, Union Square Ventures and Ribbit Capital.


Samir Desai, Co-founder and CEO of Funding Circle said: “Since we launched Funding Circle in 2010 we have secured $123 million of venture capital funding in London – starting with our first $1 million seed funding in 2010, right up to our latest $65 million round in July. This support has allowed us to build the world’s leading marketplace for business loans. In the UK, more than 5,500 small businesses have accessed over £370 million, and at the end of 2013 we took our marketplace model to the US, to help fill the small business funding gap which also exists there. The latest round will help us to consolidate our growth even more, and allow us to explore further international markets.”


In addition to the venture capital funding received by London companies, London has also seen new VC funds base themselves in London in 2014 to invest in tech opportunities around the world.


According to London Partners, new funds worth than $1.5 billion have set up in the capital during 2014, with companies including Index Ventures, Google, Santander and Balderton Capital creating new London-based investment vehicles.


The increase in funding correlates with the growth of technology companies in the capital.  There are currently more than 34,000 digital technology firms in London. That number is expected to rise to 45,000 in the next decade creating 46,000 new jobs and creating more than £12 billion of economic activity, according to recent research by Oxford Economics².

Notes to Editors

¹ Source: CB Insights deals from 1/1/2014 – 30/9/2014

² Source: Oxford Economics


High-Res versions of the graphs above are available to download by following this link:

About London Partners.

London Partners is the official promotional company for London. We promote London and attract businesses, events, congresses, students and visitors to the capital. Our aims are to build London’s international reputation and to attract investment and visitor spend, which create jobs and growth.

London Partners is a not-for-profit public private partnership, funded by the Mayor of London and our network of commercial partners.

For more information visit      


About Passion Capital

Passion Capital is the premier early-stage venture fund in London, established by former entrepreneurs and operators who are applying their experiences to helping founders and early-stage teams build hugely valuable digital media/technology companies. Passion Capital general partners have been personally involved in the largest European technology exits of the past decade, including the biggest exits of the year for 4 of the past 10 years by market value ( acquired by QXL, Skype purchased by Ebay, acquired by CBS, and QXL/Tradus acquired by Naspers) — and look forward to being involved in many more. For more information, visit or @passioncapitalAbout

About Funding Circle

Funding Circle ( is the world’s leading online marketplace for business loans, enabling investors to directly lend to small businesses in both the UK and the US. Since launching in the UK in 2010 Funding Circle has now lent more than $500 million to over 5,000 businesses, and currently lends $50 million per month.


Martin Greig, PR Manager – Technology

Tel: 020 7234 5779, 07920 759019



London Partners Media PR Team

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