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Brexit fails to dent VC appetite for UK startups

(Image credit: Image source: Shutterstock/MaximP)

European venture capitalists (VC) are still keeping their eyes set on the UK, new figures have revealed.

Research from KPMG Enterprise found VC investments in the country are on the rise, and in the third quarter of this year, venture capitalists have invested in 200 opportunities, raking up a total of £1.4 billion into UK startups.

This equals to a rise of £9 million, compared to the same period last year.

Two of the ten best deals closed in Q3 were based in the UK, the report states, mentioning Orchard Therapeutics with its £111 million series C fundraise, as well as the Artios’ £65 million series B fundraise. Both startups are from the healthcare industry.

Commenting on the findings, Patrick Imbach, head of KPMG’s innovative startup practice said:

“In what is considered a traditionally slow period for investment and with the added uncertainty created by Brexit, the UK has continued to attract VC investors to its thriving startup and scaleup sector. It is reassuring to see that concerns about Brexit have had little impact on the appetite for good quality UK enterprises, with amount of VC investment up on the same quarter a year ago.

“The UK enjoys significant advantages even in the shadow of Brexit, with great access to talent, its status as a global financial centre, world leading universities and concentration of traditional private investment managers. Although Brexit poses a big question mark for investors, many enterprises have already acted to mitigate the potential risks with several fintech companies having pursued banking licenses in order to be able to continue to operate in and across different jurisdictions.”

You can find KPGM’s full report on this link (opens in new tab).

Image source: Shutterstock/MaximP

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.