Bengaluru has emerged because the world’s fastest-growing mature tech ecosystem on this planet since 2016, adopted by the European cities of London, Munich, Berlin, and Paris, with India’s monetary centre of Mumbai in sixth place, in line with new analysis launched in London on Thursday.
Dealroom.co information analysed by London & Companions – the Mayor of London’s worldwide commerce and funding company – reveals that funding within the Karnataka capital of Bengaluru grew 5.four occasions from USD 1.Three billion in 2016 to USD 7.2 billion in 2020, with the Maharashtra capital of Mumbai rising 1.7 occasions from USD 0.7 billion to USD 1.2 billion in the identical interval.
The UK capital of London registered a formidable 3 times development between 2016 and 2020, rising from USD 3.5 billion to USD 10.5 billion.
“It’s incredible to see that Bengaluru and London ranked as the highest two fastest-growing world tech hubs for VC funding. Our two nice cities share mutual strengths in entrepreneurship and innovation – creating a number of alternatives for tech buyers and corporations to do enterprise throughout each areas,” mentioned Hemin Bharucha, Chief Consultant of India at London & Companions.
“London has a robust commerce and funding relationship with cities throughout India and immediately’s figures present the alternatives for future partnerships between UK and India on expertise. Regardless of the pandemic, tech corporations in London and India are persevering with to paved the way in creating sport altering applied sciences – particularly in excessive development sectors akin to EdTech and Fintech,” he mentioned.
“The UK authorities’s current Brexit take care of the European Union brings certainty for Indian corporations and buyers seeking to London and we look ahead to welcoming extra Indian companies to the UK capital within the years forward,” he added.
Bengaluru can also be ranked sixth for the world’s tech enterprise capitalist (VC) investments, on a worldwide checklist topped by Beijing and San Francisco, New York, Shanghai and London making up the highest 5. Mumbai is available in at No. 21 within 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 expertise pool” because the spotlight of what has been known as India’s Silicon Valley up to now.
“It has been thrilling to be a part of Bengaluru’s emergence as a world-class tech hub. From right here we expanded our enterprise operations into London in Could final yr, in addition to into the Center East and America markets. London is a worldwide tech hub with entry to a thriving tech expertise pool alongside development capital and a large buyer base. We’re excited to develop our enterprise within the metropolis,” mentioned Anant Agarwal, Managing Director, Skillmine.
Behind Bengaluru and London, the opposite quick rising tech hubs embrace the 2 German cities of Munich and Berlin and the French capital of Paris, all three greater than doubling their investments within the 2016-2020 interval. The UK capital, nevertheless, cemented its standing as Europe’s main tech hub – with London corporations receiving over 3 times the quantity of funding than some other European tech metropolis.
“London is the worldwide tech capital of Europe. Regardless of the challenges caused by Brexit and the coronavirus pandemic, London’s tech sector continued to thrive in 2020 and has an vital position to play within the metropolis’s financial restoration. London is already residence to among the world’s finest expertise corporations and can stay open to worldwide funding and tech expertise from all around the world,” mentioned London Mayor Sadiq Khan.
Regardless of the worldwide pandemic and the UK’s exit from the EU, London tech corporations raised USD 10.5 billion in 2020 – considerably greater than the entire quantity raised in 2017 (USD 7 billion) and 2018 (USD 5.9 billion) and near the report in 2019 (USD 10.7 billion).
“It is sensible to see how resilient London’s tech sector has been, regardless of all of the challenges of 2020. Worldwide buyers have proven actual confidence in London, with new enterprise capital funds organising right here to put money into high-growth corporations in sectors like fintech, cybersecurity and well being tech. It is because London continues to be the gateway to the European market and a incredible place to arrange and scale a tech firm,” mentioned Laura Citron, CEO of London & Companions.
The brand 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 corporations elevating a report USD 15 billion in 2020. Extra findings present that London is now residence to 1,252 VC corporations – greater than some other 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 prime sector for VC buyers. London noticed an 82 % improve in enterprise software program investments final yr, with the UK capital’s corporations elevating a complete of USD 1.9 billion.