London is Europe's most attractive city for tech start-ups

Keiligh Baker's picture

London has been crowned Europe's most attractive city for technology start-ups, despite a sharp slowdown last year.

Despite Brexit worries the Mayor's promotional agency, London & Partners, said that figures show £1.8 billion was invested in new tech businesses in 2018.

The figures reveal an almost 30 per cent slump on 2017 and represent the first slowdown in six years, L&P said in a statement.

But London's 2018 total was still double the level of Berlin, which came second at £936.53 million, while Paris came third with £797.04 million.

Investment is being propelled by a "significant" increase in funding for emerging sectors such as fintech - or financial technology - as well as Artificial Intelligence and Blockchain.

Britain continues to be a major force in European tech, with a growing stable of so-called "unicorns", private companies that are worth more than $1 billion each, including online banks Monzo and Revolut.

Britain's entire tech start-up sector raised almost £2.5 billion last year, down 20.2 percent from 2017.

But it is difficult to compare the year on year changes because 2017 saw vast deals, including food courier Deliveroo, virtual reality specialist Improbable and money transfer firm TransferWise, that did not materialise last year.