The UK remains top for tech startups after Brexit
The UK remains the top country in Europe for innovative technology startups, attracting more talent and investment than any other country and claiming the crown as the region's capital for "deep tech".
The findings come in a major new report from venture capital firm Atomico which signals a feared Brexit effect on the industry has not materialised.
Investors have ploughed $5.4bn into the UK's tech companies in 2017, figures from Dealroom show, more than double the amount of its nearest rival Germany.
And the country remains the number one destination for tech talent, attracting 20 per cent of all international migrants in European tech, LinkedIn data demonstrates, and is home to more professional developers than any other country.
Read more: 2017's a record year for Silicon Valley cash going into UK tech startups
When it comes to so-called deep tech – that is, areas such as machine learning, scientific discoveries and engineering breakthroughs – the UK was identified as the leading location with $1.8bn of flowing in this year, more than three times as much as its nearest rival France.
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Atomico – The State of European Tech 2017 from Atomico on Vimeo.
However, that stellar success was tempered by survey findings in the State of European Tech report of more than 3,500 founders, investors and others in the industry, that the UK is the least optimistic for the future of European tech. And nearly a third of founders in the UK said they were finding it harder to raise cash now than this time last year.
Read more: UK tech employs more foreign workers from outside the EU than within
But collectively, the technology industry is thriving – and taking on the might of Silicon Valley. The continent is on track for a record $19bn of investment this year, up from $14.4bn in 2016, while there were more deals worth $50m or more than in any other year.
Meanwhile, the research found that Europe is producing twice as many PhD graduates in science, technology, maths and engineering (STEM) than the US while the pool of developer talent has grown by nearly a fifth.
“The question of whether Europe can produce world-class innovation has been put to bed. The question of whether it can produce a $10bn company has been put to bed. And while Europe is notably absent from the top 10 most valuable companies in the world, the probability that the next industry-defining company could come from Europe has never been higher," said Atomico partner and head of research Tom Wehmeier.
“Europe is building a tech ecosystem in its own image, defined by deep tech expertise, incredible geographic diversification, and a uniquely collaborative approach with traditional industry. The solid foundations that have been laid – a huge and deep talent pool, founders with ambition levels on par with those from anywhere, and a large, growing and increasingly sophisticated investor base – means that Europe marches to its own beat."