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This year saw the UK account for a significant chunk of the European Union’s tech investment. UK tech received £26 billion this year, a 2.3X increase from 2020 figures which stood at £11.5 billion.

According to the Digital Economic Council, the amount accounts for 35% of all tech investments across the block.

The £26 billion raised by UK startups and scale-ups was close to double what Germany (£13.5 billion) raised and more than three times what French companies (£8.6 billion) received, according to Dealroom, which compiled the data summary.

The year of unicorns

Twenty-nine new unicorns (companies valued at more than 1 billion dollars) were created in Britain alone in 2021, including companies like Depop (an e-commerce platform), Motorway (a car selling platform), and Starling Bank.

The total number of unicorns in the UK is 116, which means that a quarter of the unicorns were born in 2021 alone.

The UK boasts more unicorns than Germany (56) and France (31). The majority of the money comes from the US (38.2%). It primarily goes into fintec and healthtec companies. Compare that to the 28% coming from within the UK.

A record year for everyone involved

US venture funds that launched UK offices include Sequoia (a Silicon-Valley mainstay), Lightspeed Ventures, and General Catalyst.

Even though the UK venture totaled less than what American investors poured in, its contribution experienced a record year nonetheless, raising £7 billion with record-breaking fundraising for Balderton Capital, Eight Road Ventures, and Index Ventures.

Cambridge emerged as the most robust tech investment city outside of London, followed by Manchester. Meanwhile, Digital Minister Chris Phillip spoke to The Telegraph. He called for long-term British investors like pension funds to consider investing in earlier stages of companies or venture capital funds.