The need for South East companies to keep investing in new IT is underscored by the record levels of investment in UK tech companies last year.
If venture capitalists are taking investment in UK tech so seriously, then so should all types of organisations across Sussex, Surrey and Hampshire.
Fears that Brexit would cause investment in UK tech companies to dry up appear to be unfounded. The latest research, conducted by PitchBook, for London & Partners, the city’s official promotional company, reveals that venture capital investment reached an all-time high in 2017.
UK firms attracted £2.99 billion almost double that of 2016 with London attracting the lion’s share – £2.45 billion.
Among the biggest deals carried out were Improbable, Deliveroo and Truphone with financial technology being the sector that attracted the biggest overall slice with £1.34 billion.
Gary Jowett, from Computer & Network Consultants in Brighton, says: “There’s clearly a strong and thriving tech sector in the UK which highlights the importance of IT to our entire economy. It indicates that companies in all sectors need to keep investing in IT to remain competitive. IT is the lifeblood of most businesses and it can’t be allowed to get out of date otherwise your business could go bust.”
London outshines Berlin
The research also shows that London attracted more venture capital money than any other European city. London gained £1.8 billion from 544 deals while Berlin received £775m and Paris £557m.
In stark contrast to the confidence shown by venture capitalists in the UK tech sector, a survey by the Federation of Small Businesses reveals a decline in confidence among many smaller UK companies. Many respondents mention downsizing and reducing their workforces.
Gary says: “Such pessimism by small businesses is understandable at a time of uncertainty but the boom in tech investment is a sure sign that whatever the economic outlook in the next few years, all companies need to arm themselves with the best IT to serve customers and collaborate with business partners in new ways.”