The UK tech sector attracted a record $6.7 billion (£5.5bn) in foreign investment in the first seven months of this year, according to research from industry group Tech Nation and data firm Dealroom.
The amount is 43% higher than the $4.7 billion that UK tech companies raised over the same period last year.
UK tech has now overtaken the US for foreign investment per capita and is averaging $1 billion a month from both foreign and domestic investors.
US and Asian investors poured $3.7 billion into UK firms in the first even months of this year, accounting for 55% of all the investment. In comparison, US and Asian firms invested $2.9 billion in Britain’s tech sector across the whole of 2018.
According to Tech Nation, since 2013, the UK tech sector has raised twice as much funding as Germany from US and Asian investors and six times as much as France.
Nicky Morgan, secretary of state for Digital, Culture, Media and Sport, said:
“These fantastic figures show the confidence overseas investors have in UK tech with investment flows from the US and Asia at an all-time high.
“We have a longstanding reputation for innovation and the statistics endorse our reputation as one of the best places in the world to start and grow a digital business.”
Natalie Black, HM Trade Commissioner, Asia Pacific said:
“Today’s figures demonstrate investors’ confidence in the UK tech sector, which continues to go from strength to strength growing one and half times faster than any other sector in the economy. By attracting a broader mix of investors, particularly from Asia, we are showing that the UK’s tech sector is one of the most competitive in the world with a stable, bright future.”
Eileen Burbidge, Chair of Tech Nation said:
“Investment in the UK tech sector has been steadily rising for years and as these latest figures demonstrate, the momentum is increasing. It is incredibly gratifying to see that in addition to domestic and European investors, British tech innovators are also attracting US and Asian investor attention and allocation. The fact that this is growing is a testament to the strength and depth or our entrepreneurial talent, coupled with the dynamic and deeply engaged ecosystem that has been established here in the UK.”