Bengaluru is announced to be the world’s fastest-growing tech hub in the world leaving behind London, Paris and other European cities. According to data from Amsterdam-based Dealroom.co, analysed by London and Partners, India’s financial hub Mumbai comes in at sixth place.
Dealroom.co is a data-aggregator for startups. The data provided by the data provider was analysed by London & Partners which is a trade and investment agency. Data coming from Dealroom.co revealed that the investment of Bengaluru grew 5.4 times from $1.3 billion in 2016 to $7.2 billion in 2020. Maharashtra’s capital Mumbai grew 1.7 times from $0.7 billion in 2016 to $1.2 billion in 2020.
Hemin Bharucha, Chief Representative of India at London & Partners lauded the immense growth of the Indian cities and acknowledged the wealth of entrepreneurship these cities have.
“It’s fantastic to see that Bengaluru and London ranked as the top two fastest-growing global tech hubs for VC investment. Our two great cities share mutual strengths in entrepreneurship and innovation – creating lots of opportunities for tech investors and companies to do business across both regions,” said Hemin Bharucha.
Bharucha also spoke about the recent Brexit deal with the EU and how it impacts the Indian companies. “The UK government’s recent Brexit deal with the European Union brings certainty for Indian companies and investors looking to London and we look forward to welcoming more Indian businesses to the UK capital in the years ahead,” he said.
Trailing behind Bengaluru and London in the fastest-growing tech hubs are the German cities of Munch and Berlin, the French capital Paris. All three of these tech hubs doubled up their investments in the 2016-2020 period. London took the first position as the European continent’s leading tech hub. The UK capital received over three times the investment than their European counterpart tech hubs.
Despite the coronavirus pandemic that had plagued businesses across all sectors and Britain’s exit from the European Union, London is at a commanding position. London tech firms raised investments worth $10.5 billion in 2020. This amount is more than the total investments raised in 2017 ($7 billion) and 2018 ($5.9 billion). The UK capital just fell short of their previous record of raising $10.7 billion in 2019.
Dealroom.co and L&P’s research also shows that mega funding rounds for London-based tech companies increased venture capitalist investments for the UK tech for the year 2020. British tech firm raised a record $15 billion in 2020. Another interesting revelation by Dealroom.co states that London now hosts 1,252 venture capitalist firms, a number way more than any other European city.
Bengaluru also received another impressive feat. The Karnataka capital is ranked sixth in the list of the world’s biggest tech VC investments. Bengaluru now follows Beijing, San Francisco, New York and London that make the top five on the global list. Maharashtra’s Mumbai comes in at the 21st position in the ranking.
According to Bengaluru Innovation Report 2019, Bengaluru had reported more startups since 2016 than Mumbai and Delhi combined.
The Bengaluru Innovation Report 2019 also revealed that 1 in every 4 companies in DeepTech, HealthTech and FinTech sectors are able to raise funding.
The same report also stated how Bengaluru leads the way in being the home of the Biggest unicorns in the nation.
Recently, Bengaluru was in the news for being the first city in India to open its doors and welcome electric vehicle giant Tesla. Tesla has registered itself in India as a private subsidiary and has also appointed three new directors for the operation of their Indian arm.
