Following a year of rapid growth for Britain’s tech industry, 2017 has already offered good news with Snapchat opening its international base in London. The move is expected to bring hundreds of millions of non-US ad revenues into the UK.
Snapchat said it picked the capital over European alternatives because its “strong creative industries make it a great place to build a global business”, in what is another sign that the UK tech scene has been unhampered by the vote to leave the European Union.
The announcement followed research released earlier in the week that showed British tech deals hit a record high in 2016, with takeovers rising by 40 per cent. Separate research showed 2016 was also a record year for investment, with £6.7 billion pouring into the scene from private equity and venture capital firms. By comparison, £1.3 billion was invested in Germany and £4.3 billion in France.
But drilling into the information shows it wasn’t completely plain sailing, with investment tailing off in the second half of the year after the referendum. Analysts will be keeping a close eye on how the negotiations affect investment and growth as the year progresses