LONDON (Reuters) – Investment in Britain’s tech sector surged 44% to a record $13.2 billion pounds in 2019, accounting for a third of all European funding and exceeding the total in France and Germany combined, the UK government’s Digital Economy Council said on Wednesday.
The UK was behind only the United States and China in the level of venture capital funding, and it saw strong growth whereas both of its bigger rivals saw declines, according to the research conducted by Tech Nation and Dealroom.co.
On a city level, London joined San Francisco’s Bay Area, Beijing and New York at the top of the world’s most-funded locations, it said.
Digital Minister Matt Warman said it was “fantastic to see Britain continues to be the best place in Europe to start and grow a tech business, with record-breaking investment and the creation of eight new billion-dollar companies last year.”
He said that while the country was in a good position, it could not afford to be complacent and had to ensure that government policy supported the sector.
“On access to talent, we will have a different immigration policy over the coming years and that will be an important opportunity for us to show that Britain is still very much the right place to start or grow a tech business,” he said in an interview.
The Conservatives plan to introduce an “Australian-style” points-based immigration system, and have promised to reduce overall immigration numbers, especially among the less skilled.
Under the new system, which will treat EU and non-EU citizens the same, most immigrants will need a job offer to come to Britain, but there will be special visa schemes for those who are leaders in fields such as science and technology or who will fill shortages in public services.
Britain was striking the right balance between regulating the fast-growing tech sector, for example in developing polices to make the internet as safe as it could be, Warman said, while also remaining pro-investment.
The research showed that companies headquartered in London raised $9.7 billion pounds of the total, and the amount of money invested in early-stage companies jumped to $5.1 billion in 2019, from $4 billion the year before.
Tech investor Saul Klein, co-founder of venture capital firm LocalGlobal, said Britain’s success had been 20 years in the making, starting with the arrival of U.S. companies which had established an ecosystem that helped home-grown firms flourish.
“When you look at the number of $1 billion companies – AKA ‘unicorns’ in Silicon Valley tech talk – London has 46 unicorns, Berlin has 12, Paris has 11,” he said. A unicorn is a privately held startup company valued at more than $1 billion.
“In the last 10 years, Britain has consolidated its position through a combination of capital, talent and building these $1 billion companies.”
The eight British companies that reached unicorn status in 2019 were Rapyd, CMR Surgical, Babylon Health, Sumup, Trainline, Acuris, Checkout.com and OVO Energy, taking the total created in the UK to 77, twice the total in Germany and almost four times as many as Israel, the report said.
(Reporting by Paul Sandle; Editing by Bernadette Baum)
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
