VC investment reaches all time year-end high and set to boost to flexible office take-up in 2021

According to data* analysed by Workthere, venture capital (VC) investment in the UK reached an all-time high of £12.5 billion in 2020*, which is an increase of 14% on the previous highest figure recorded in 2019 of £10.9 billion.

The flexible office specialist confirms that the tech sector continued to dominate in 2020 and also hit a new investment record of £5.1 billion, which accounts for over a third of total VC investment and represents a £998 million increase compared to last year. VC investment into restaurant technology in particular saw a significant increase (+966% yoy) as demand for takeaways rose across the UK this year with many food and beverage operators adapting their model to incorporate or enhance their offer. Deliveroo has nearly single-handedly driven the restaurant tech sector with a £471 million pound deal accounting for almost 83% of the vertical’s investment.

Nanotechnology (science, engineering, and technology conducted at the nanoscale) also topped the table for VC investment growth in 2020 seeing a year on year increase of 1626%. Again, this has been strongly linked to the pandemic with companies such as Oxford Nanopore and LumiraDx, who have created rapid testing solutions, seeing a rise in investment.

Workthere notes that fintech however has seen a slowdown in interest. Only two core fintech companies have been featured in the top 10 investment deals this year, compared to eight in 2019. The maturity of several challenger banks that have emerged over the last decade has also contributed to a fall in activity. Molo Finance, one of the two fintech companies in this year’s top 10 deals, has driven the growth in Mortgage Tech as a vertical. Their £266 million deal accounts for 83% of investment in the vertical, with their online buy-to-let mortgages for first time buyers (buyers with under 4 properties).