Research: London and SF have develop into Affect Tech hubs, with 280% improve in VC in 5 years

By | November 12, 2020

New analysis has discovered that San Francisco and London have develop into two of the world’s main hubs for VC funding into tech options which tackle a number of of the 17 UN’s Sustainable Development Goals (SDG), extra generally known as ‘Affect Tech’. They’re adopted by Paris, Berlin, Stockholm, Shanghai and Beijing.

Tech options for such urgent points because the local weather disaster and social inequality has seen a 280% improve in international VC funding from 2015 to 2020, whereas funding on this house greater than doubled in each cities over the previous 5 years. The report was put collectively by London & Partners and Dealroom as a part of this week’s Silicon Valley Comes to the UK digital occasion. Over 5,000 startups have been surveyed to create the information.

In accordance with the analysis, VC funding into London-based impression tech start-ups has grown by virtually 800% (7.8 occasions) since 2015, in comparison with 3.1 occasions in Europe as an entire. 2020 is set to be a file yr for London’s impression tech firms, which have obtained $1.2bn in VC funding from January to October, already matching 2019 ranges. London’s impression corporations have additionally secured 429 offers between 2015 and 2020, greater than another metropolis globally.
 
San Francisco’s impression based mostly tech firms have additionally proven robust development over the previous 5 years, with the information revealing that VC funding into its impression tech firms has virtually tripled (2.8 occasions) from 2015 to 2020. Up to now this yr, SF-based impression tech firms attracted $1.7bn of VC funding in 2020 – greater than another metropolis globally. At a nationwide degree, america obtained extra VC funding for impression tech firms than another nation up to now 5 years, with traders pumping $35.8bn into US corporations since 2015, double the quantity invested into China ($16.8bn) and the UK ($6.1bn).
 
The analysis additionally discovered that UK capital has produced 241 impression start-ups since 2006, with 95 firms based in San Francisco. In London, ‘impression unicorns’ embody Octopus Vitality (inexperienced power), Arrival (zero-emission, public transportation autos) and Gousto (meals) and Babylon Well being (AI healthtech).

Local weather change and clear power options have attracted probably the most curiosity from traders in each cities, making up over 50% of general VC funding over the past 5 years. Funding rounds together with a minimum of one North American investor made up $234m of VC funding to this point this yr in London, up from $85m in 2018, and equating to a fifth of all VC funding into London’s impression startups.
 
Funding rounds for London impression firms involving North American traders in 2020 embody a $118m development fairness spherical into Arrival by Blackrock, an $80m Collection B spherical for COMPASS Pathways and a $25m Collection C funding for Tractable.

In the meantime, Affect startups are crossing the pond in each instructions. Arrival is now working in Los Angeles, whereas Octopus Vitality launched within the US market in September after closing a $360m funding spherical in April and buying Silicon Valley-based startup Evolve Vitality. And San Francisco-based Allbirds, the sustainable shoe retailer, opened its first European flagship retailer in London in July 2018.

Commenting, Janet Coyle, managing director for enterprise, London & Companions mentioned: “San Francisco and London are two of the world’s high hubs for innovation and know-how. However as we speak’s figures additionally present that they’re main the best way in creating purpose-driven firms striving to sort out a few of the most urgent environmental and social challenges.”

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