London-based venture capital firms have created tech investment funds worth a total of $1.4 billion (£850 million) in the last six months, it emerged today.
London & Partners, an organisation tasked with promoting the city of London on behalf of City Hall, announced the figure as investment firm DN Capital revealed it has launched a new $200 million (£121 million) venture capital fund in London.
DN Capital joins several other large firms that have raised London-based technology investment funds since April.
For example, Index Ventures raised $543 million (£328 million) in June, Balderton Capital raised $305 million (£184 million) in April, Santander raised $100 million (£60 million) in July and Google Ventures raised $100 million (£60 million) in July.
In addition, Dan Cobley, former European head of Google, said in August that he plans to start Brightbridge Capital, a financial technology incubator and investment fund, in London. The fund is reported to be worth $84m (£50 million).
Each of the aforementioned funds will be used to support promising technology companies in London, the UK and Europe.
London & Partners said the funds will ultimately help London tech firms access new investment, encourage job creation and support economic growth.
“London is increasingly the place to be for investors seeking high-growth tech opportunities," said Gordon Innes, CEO of London & Partners.
"Funds based in London have access to the cream of the European technology scene, meaning they have the opportunity to invest in the great companies being created in booming clusters such as London’s Tech City."
But Russ Shaw, founder of Tech London Advocates, a private sector coalition of tech leaders that wants to promote London as a hub for technology, said London-based investors need to start playing the long game like their US counterparts.
"One of the differences between US and UK investors is the UK tech investor has a shorter time horizon in terms of getting to profitability," he told Techworld today.
Shaw added that tech companies should aim to boost their top line growth and worry about profitability "later down the line", possibly in year six or seven of operation.
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