Menu visibility control



Startup Surgery

Most Recent


Top tech stats: Virgin’s business predictions, developers have their say and more


London FinTech Aire raises $5m Series A from Sunstone Capital and White Star Capital


Tech Chats: EY’s Daniel Lyons on how tech is revolutionising transport

Press Releases

GreenKey Technologies and Red Box Recorders partner to launch integrated trading voice collaboration and compliance recording solution
Leading light in British HealthTech, Network Locum, rebrands to Lantum
SteelEye announces regulatory tech specialist Matt Smith as CEO

KPMG report predicts increased investment in UK blockchain, AI and IoT startups

KPMG Venture Pulse report Q1 2017

Investor sentiment appears positive despite UK PM Theresa May triggering Article 50, with expectations of increased levels of activity set to take place across sectors such as AI, IoT and blockchain.

That’s according to ‘KPMG’s Venture Pulse Q1 2017′ report, which noted that despite sentiment remaining positive, political uncertainty did result in a somewhat slow European VC market at the beginning of this year.

Although there was a drop both in terms of deal activity and total investment volume during Q1, the report goes on to note that there are positive signs for a turnaround.

UK-founded tech startup Blockchain secures $40m Series B

Major technology companies, the report says, are continuing to show their long-term confidence in the UK’s ecosystem. In order to support this claim, the report cites Apple’s, Snap’s and SoftBank’s decision to chose London as the base for its international headquarters.

In more positive news, the findings show that UK startups operating within financial services, life sciences and BioTech also continued to attract investment during Q1.

In fact, companies such as Currency Cloud (£20m Series), Funding Circle ($100m Series F) and Atlas Genetics ($35m Series D) closed impressive investment rounds at the beginning of 2017.

European deal value

Although deal value in Europe remained fairly steady in Q1’17 with $3.4bn invested in companies, deal volume slumped to a five quarter low, particularly for early stage firms.

The report says that Angel and Seed stage deals were the hardest hit throughout the period, with Q1 2017 results remaining below the number of early stage VC investments for the second consecutive quarter.

Although the deal volume decreased, the research shows that corporate VC participation continued to be strong in Europe, with corporates taking part in 22% of all venture deals in Europe during Q1 2017 – the highest percentage seen over the past seven years.

Additionally, the first quarter of 2017 also saw strong investment into VC funds in Europe. This was exemplified by London-based VC Atomico raising a $765m fund.

The IPO market

While some mature players in the European tech market have announced their intent to IPO, the report says that concerns remain about the liquidity of the capital market, especially for early stage companies.

Firms such as London-based Deliveroo and Sweden-based Spotify are two of about half a dozen large companies that are expected to look for an IPO, but the report predicts that the market is likely to remain relatively quiet over the coming quarters.

US investors

According to the research, US investors continued to show a significant level of interest in opportunities across Europe and Latin America in Q1 2017.

The report says that post Brexit-related exchange rate fluctuations turned some investors’ focus to the UK. In stark contrast, others decided to target companies in Israel, Spain and other countries where companies were deemed to potentially offer a higher ROI.

For more information on UK tech investment news check out our investments channel and investment deal tracker

Enter your email address to receive updates straight to your inbox

* indicates required
Send me news on...

Editor's picks

startup tech laptop

Top tech stats: Virgin’s business predictions, developers have their say and more
posted on July 22, 2017

Aire Team picture June 2017_9

London FinTech Aire raises $5m Series A from Sunstone Capital and White Star Capital
posted on July 21, 2017

Tech Chats June - digital mobility

Tech Chats: EY’s Daniel Lyons on how tech is revolutionising transport
posted on July 21, 2017

mobile phone

London machine learning startup Sportr closes $350k Seed round
posted on July 21, 2017

The Week in Tech

A $170m tech fund, a drowning robot and more in The Week in Tech
posted on July 21, 2017

Graphcore founders Nigel Toon CEO (right) & Simon Knowles CTO (left)

Bristol-based Graphcore raises $30m from backers including DeepMind co-founder and Atomico
posted on July 20, 2017