India overtakes UK in venture capital investments in 2021

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Bangalore continued to lead India’s tech charge in 2021, attracting £13.56 billion to rank fifth among the world’s top cities for tech venture capital investment. (Photo by DIBYANGSHU SARKAR/AFP via Getty Images)

By: Chandrashekar Bhat

Venture capital (VC) investments in the tech sector hit a record high in India in 2021 as the country’s ranking jumped a notch to third place, according to new research.

Analysis jointly conducted by London & Partners and Dealroom.Co found that Bangalore continued to lead India’s tech charge, attracting $18.6bn (£13.56bn) to rank fifth of the world’s leading cities for venture capital technology investments.

Overall, Indian investment in tech venture capital has nearly tripled from $14.9bn (£10.86bn) in 2020 to $44.6bn (£32.51bn). pounds) in 2021, a record year for such investments at $675 billion (£492 billion).

According to the report released in London on Thursday (13), the UK ranked fourth with $39.8bn (£29.01bn), with the capital London also in fourth place just ahead of Bangalore in as the world’s leading tech hubs with $25.5 billion (£18.59). ).

London was in fourth place among the best tech hubs in the world in 2021. (Photo by DANIEL LEAL/AFP via Getty Images)

“Record venture capital investment figures for the UK and India in 2021 demonstrate that technology and innovation are booming in both regions. With a growing number of unicorns and exciting tech startups, cities such as London and Bengaluru (Bangalore) are now recognized by VCs as some of the best places to find game-changing companies to invest in,” said Hemin Bharucha , Country Director, India, for London and Partners, the international trade and investment agency of the Mayor of London.

“This is great news for tech companies in both ecosystems and creates many opportunities for collaboration between London and Indian tech hubs, especially in areas of mutual strength such as fintech and edtech. access to high levels of growth capital, London has the talent, customers and support ecosystem that tech companies need to scale and we look forward to helping more Indian companies grow in London in 2022 “, did he declare.

Venture capital tech investments in 2021 were led by the US with $328.8bn (£239.66bn), followed by China with $61.8bn (£45.05bn). pounds sterling).

The main global centers attracting these investments were the San Francisco Bay Area ($100.9bn or £73.54bn), New York ($47.5bn or £34.62bn ), Greater Boston Area ($29.9 billion or £21.79 billion), London ($25.5 billion or £18.59), Bangalore ($18.6 billion or 13, £56bn), Beijing ($13.6bn or £9.91bn) and Shanghai ($13.4bn or £9.77bn).

In terms of unicorns or startups valued at over $1 billion produced in 2021, 133 of those companies were from the Bay Area, 69 from New York, 21 from the Greater Boston area.

Bangalore had a banner year, producing 16 new unicorn companies, with London producing more new unicorns than any previous year at 20.

Akshay Chaturvedi, Founder and CEO of Delhi-based technology company Leverage Edu, said: “Over the years, London has established itself as a leading hub for talent in several fields. For a customer-focused, technology-driven business like ours, it’s only natural to establish our largest international office in London. »

“The quality and diversity of talent here is unmatched. I would like to thank London and Partners for helping us at the start of this incredible adventure.

Eileen Burbidge, partner at London-based venture capital firm Passion Capital, added: “London and the rest of the UK tech sector continue to go from strength to strength and (this) means the UK is now competing on the global stage.” .

(PTI)

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