In a significant boost for post-Brexit Britain, new research from HSBC Innovation Banking’s latest report reveals that the United Kingdom has become Europe’s leading destination for start-up venture capital. The report covering the third quarter of 2023 indicates that the UK is outstripping every nation in the EU27, standing as the top choice for investors. The International Trade Secretary, Kemi Badenoch, hailed this achievement as a “massive vote of confidence” in Brexit Britain.
Contrary to the concerns expressed by some, the HSBC data demonstrates that post-Brexit Britain is thriving, attracting substantial investment into start-ups, fueling the growth of its burgeoning tech sector, and creating numerous job opportunities. The report shows that the UK ranks third in the world, with only the USA and China drawing in more venture capital funding.
“We know the UK is the best place in Europe to invest, and today’s news is a massive vote of confidence that reaffirms this fact,” stated Ms Badenoch. She emphasized that this success is a testament to the UK’s resilience and attractiveness to investors, highlighting the country’s position as a global science and tech superpower.
The investment in UK start-ups is on track to reach an impressive £14.7 billion by the end of the year, equivalent to the levels seen in 2020. Notably, between July and September 2023, a total of £4 billion was invested in the UK, marking a 14 percent increase compared to the previous quarter.
The UK Government is gearing up to host the second Global Investment Summit (GIS) next month, an event expected to draw approximately 200 prominent investors and CEOs from around the world. Prime Minister Rishi Sunak and International Trade Secretary Kemi Badenoch’s Department for Business and Trade will lead the initiative, showcasing the UK as a prime destination for international investment and promoting investment opportunities across the nation.
The event will focus on various sectors, including life sciences, deep tech, nuclear fusion, small modular reactors (SMRs), and manufacturing. Capital investment, particularly in sectors like sustainable energy, will be catalyzed by the financial liberalization introduced post-EU Exit, encapsulated in the Edinburgh reforms.
The inaugural Global Investment Summit held in October 2021 secured an astounding £9.7 billion of new foreign investment on the day of the event. This influx of capital led to the creation of over 30,000 new jobs and supported growth in key sectors such as renewable energy, sustainable housing, and carbon capture and storage.
Commenting on the forthcoming event, Prime Minister Rishi Sunak stated, “The next Global Investment Summit is an opportunity to demonstrate what we can do as a nation, delivering on our ambition to be the world-leading destination for international finance and investment.” Minister for Investment Dominic Johnson reiterated the UK’s openness to business, welcoming investors to the summit and highlighting the nation’s strong returns, innovative businesses, and globally respected rule of law.
The UK’s position as a leader in attracting venture capital funding not only underscores the resilience of its economy but also reaffirms its status as a hub for innovation, promising a brighter and more prosperous future post-Brexit.