Bengaluru has emerged because the world’s fastest-growing mature tech ecosystem in the world since 2016, adopted by the European cities of London, Munich, Berlin, and Paris, with India’s monetary centre of Mumbai in sixth place, in response to new analysis launched in London on Thursday.
Dealroom.co knowledge analysed by London & Partners – the Mayor of London’s worldwide commerce and funding company – reveals that funding in the Karnataka capital of Bengaluru grew 5.4 instances from USD 1.3 billion in 2016 to USD 7.2 billion in 2020, with the Maharashtra capital of Mumbai growing 1.7 instances from USD 0.7 billion to USD 1.2 billion in the identical interval.
The UK capital of London registered a powerful 3 times progress between 2016 and 2020, rising from USD 3.5 billion to USD 10.5 billion.
“It’s fantastic to see that Bengaluru and London ranked as the top two fastest-growing global tech hubs for VC investment. Our two great cities share mutual strengths in entrepreneurship and innovation – creating lots of opportunities for tech investors and companies to do business across both regions,” mentioned Hemin Bharucha, Chief Representative of India at London & Partners.
“London has a strong trade and investment relationship with cities across India and today’s figures show the opportunities for future partnerships between UK and India on technology. Despite the pandemic, tech companies in London and India are continuing to lead the way in creating game changing technologies – especially in high growth sectors such as EdTech and Fintech,” he mentioned.
“The UK government’s recent Brexit deal with the European Union brings certainty for Indian companies and investors looking to London and we look forward to welcoming more Indian businesses to the UK capital in the years ahead,” he added.
Bengaluru can also be ranked sixth for the world’s tech enterprise capitalist (VC) investments, on a world listing topped by Beijing and San Francisco, New York, Shanghai and London making up the highest 5. Mumbai comes in at No. 21 in the worldwide rating, with Boston and Singapore among the many different high-ranking cities.
Skillmine, a Bengaluru-headquartered tech firm providing new era IT consulting and managed providers which expanded to London final yr, highlighted entry to “like-minded tech entrepreneurs alongside a deep tech talent pool” because the spotlight of what has been known as India’s Silicon Valley in the previous.
“It has been exciting to be part of Bengaluru’s emergence as a world-class tech hub. From here we expanded our business operations into London in May last year, as well as into the Middle East and America markets. London is a global tech hub with access to a thriving tech talent pool alongside growth capital and a wide customer base. We are excited to grow our business in the city,” mentioned Anant Agarwal, Managing Director, Skillmine.
Behind Bengaluru and London, the opposite quick growing tech hubs embrace the 2 German cities of Munich and Berlin and the French capital of Paris, all three greater than doubling their investments in the 2016-2020 interval. The UK capital, nonetheless, cemented its standing as Europe’s main tech hub – with London corporations receiving over 3 times the quantity of funding than another European tech metropolis.
“London is the global tech capital of Europe. Despite the challenges brought about by Brexit and the coronavirus pandemic, London’s tech sector continued to thrive in 2020 and has an important role to play in the city’s economic recovery. London is already home to some of the world’s best technology companies and will remain open to international investment and tech talent from all over the world,” mentioned London Mayor Sadiq Khan.
Despite the worldwide pandemic and the UK’s exit from the EU, London tech companies raised USD 10.5 billion in 2020 – considerably greater than the whole quantity raised in 2017 (USD 7 billion) and 2018 (USD 5.9 billion) and near the file in 2019 (USD 10.7 billion).
“It’s sensible to see how resilient London’s tech sector has been, regardless of all of the challenges of 2020. International traders have proven actual confidence in London, with new enterprise capital funds establishing right here to speculate in high-growth corporations in sectors like fintech, cybersecurity and well being tech. This is as a result of London continues to be the gateway to the European market and a implausible place to arrange and scale a tech firm,” mentioned Laura Citron, CEO of London & Partners.
The new analysis from Dealroom.co and L&P additionally reveals that mega funding rounds for London-based tech corporations elevated VC funding ranges for UK tech in 2020, with British tech companies elevating a file USD 15 billion in 2020. Additional findings present that London is now dwelling to 1,252 VC companies – greater than another European metropolis.
Following the outbreak of the worldwide pandemic and a rise in distant working in 2020, enterprise software program applied sciences emerged as a high sector for VC traders. London noticed an 82 p.c enhance in enterprise software program investments final yr, with the UK capital’s companies elevating a complete of USD 1.9 billion.