The UK tech sector saw record investment in the first quarter of the year听as economic recovery begins following a year of COVID-19.听
Data from听Beauhurst, a听database of UK鈥檚 high-growth companies, showed a record 465 deals in the sector, worth an unprecedented 拢4.45 billion.听
As the economy gets back on its feet and some听semblance of certainty returns post-lockdown, the听UK鈥檚 tech sectors are storming ahead.听
FinTech maintained its reign as听the most investable start–up sector, with 82 deals听completed during Q1, totalling 拢1.89bn –听more听than double the previous quarterly record of听拢857m in Q1 2020.听听
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Four of the five biggest deals of听the quarter were secured by听FinTech companies,听while around 36% of all pounds invested during听the quarter went to听FinTechs.听
However听artificial intelligence saw the greatest growth听in investment activity since Q4 2020, with a 32%听rise to 70 deals in Q1, totalling 拢591m.听听
The听life sciences and digital security verticals also had听healthy quarters, with 49 deals worth 拢798m, and 29听deals worth 拢202m, respectively.听
The overall investment scene in the UK also broke records, with an听astonishing 拢5.18bn听invested over the course of听the quarter across 647 funding rounds secured by听641 companies.听
The previous quarterly records of 拢3.4bn,听invested in听Q4 2019,听and 571 deals,听announced in Q4 2020,听were听blown out of the water, with respective increases of听52% and 13%.听
Across the country,听a number of听regions saw record听deal numbers in Q1 2021.听London听saw听313 deals, the听South East听76, the听North West听52, the East of England 46 and the听South West听37.听听
During the quarter, 48% of UK deals went to听London–based听companies, 25% to those in the South of听England, and 14% to those in the North. Just 5%听went to businesses in Scotland, 3% to those in听Wales, and 1% to those in Northern Ireland.听听
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For the first time in a single quarter, more than 拢1b听was raised by UK companies with at least one female听founder. For every pound invested, 22p was secured听by female-founded businesses, compared to 13p听in every pound invested in Q4 2020, and falling just听short of the 23p record from Q3 2016.听
Four female-founded companies secured megadeals听in Q1 2021:听challenger bank Starling Bank (拢272m),听R&D intelligence platform听Patsnap听(拢215m),听immunotherapy company听Vaccitech听(拢121m) and听FinTech aggregator Curve (拢70.2m).听听