With 72 unicorns created since 2009 and $8.7 billion in enterprise funding final 12 months, the UK is Europe’s main startup hub.
Although it stays unsure how Brexit will influence startups’ ease of recruiting and speedy scaling, preliminary pains are unlikely to displace London from its place as a worldwide heart for finance, media, retail, and know-how.
As UK-based startups attain $1 billion (~£800 million) valuations at a price of 1 per 30 days, in accordance with knowledge from Dealroom, VC companies have raised $3.5 billion in new funds to gas the subsequent wave of investments.
Interested to be taught the place that capital may movement, I requested 9 of London’s prime consumer-focused VCs to search out out which particular traits they’re utilizing to determine startup funding alternatives:
- Julia Hawkins, Partner at LocalGlobe
- Lars Fjeldsoe-Nielsen, Partner at Balderton
- Sonali De Rycker, Partner at Accel Partners
- Christian Dorffer, Partner at Sweet Capital
- Danny Rimer, Partner at Index Ventures
- Reshma Sohoni, Managing Partner at Seedcamp
- Niall Wass, Partner at Atomico
- Paul Murphy, Partner at Northzone
- Nic Brisbourne, Partner at Forward Partners
Their responses highlighted the diversify of funding pursuits within the ecosystem, but additionally present that banking, shopper well being, transport, direct-to-consumer manufacturers, and social leisure stay scorching areas.
Julia Hawkins, Partner at LocalGlobe
“I’m very targeted on the healthtech sector and inside shopper well being, I’m notably within the potential for digital therapeutics to allow individuals to realize management over habits and deal with sure power situations corresponding to psychological well being.
We’re considering deeply about transportation, we’re already traders in Citymapper, Beryl and Voi and see the large potential to enhance how individuals transfer round cities and affect how city facilities are deliberate, all whereas decreasing air pollution.
On that matter, we’re watching the local weather change debate carefully and I’m heartened by the truth that individuals all over the place have gotten wholly dedicated to decreasing waste. Companies that may produce actually round merchandise for our households, properties and locations of labor I believe will do effectively.
It’s an extremely fascinating time in media with titanic worlds of video, gaming and music are shifting and I consider within the transformative energy of video games, music and immersive experiences — TikTok and Fortnite present simply how highly effective these could be and I consider new platforms corresponding to Playdeo will make consuming media and leisure rather more lively experiences sooner or later.”
Lars Fjeldsoe-Nielsen, Partner at Balderton
“We are excited concerning the disruption inside the European transportation sector, the place we’ve seen new sorts of automobiles, like e-scooters from VOI, and wonderful advances in autonomous mobility options. Time is up for automotive possession in lots of metropolis facilities and competitors is fierce for environmentally-friendly alternate options. This creates an thrilling alternative to make use of tech to enhance public transport choices and to leverage the sharing financial system which Citymapper provides, in addition to overhaul the automotive rent sector as new gamers like Virtuo are aiming to do.
We are additionally impressed by the continued innovation within the monetary sector. We are long-time traders in fintech and have backed Revolut and GoCardless, amongst others. Traditional banks and monetary incumbents are battling fragmented and outdated know-how stacks to adapt to quickly altering shopper calls for, which creates an enormous alternative for startups.”
Sonali De Rycker, Partner at Accel Partners
“We’re enthusiastic about three key traits in shopper tech. The first is fintech, for which the UK has created a really supportive setting. A number of giant companies are being constructed from London, like Monzo, buoyed by new guidelines written round retail banking and subsequent era monetary providers in addition to enormous, unmet buyer demand.
The second is healthtech. Healthcare is a big and untapped alternative stricken by rising prices for…
