New analysis has discovered that San Francisco and London have change into two of the world’s main hubs for VC funding into tech options which deal with a number of of the 17 UN’s Sustainable Development Goals (SDG), extra generally known as ‘Affect Tech’. They’re adopted by Paris, Berlin, Stockholm, Shanghai and Beijing.
Tech options for such urgent points because the local weather disaster and social inequality has seen a 280% enhance in world VC funding from 2015 to 2020, whereas funding on this area greater than doubled in each cities over the previous 5 years. The report was put collectively by London & Partners and Dealroom as a part of this week’s Silicon Valley Comes to the UK digital occasion. Over 5,000 startups have been surveyed to create the information.
In accordance with the analysis, VC funding into London-based influence tech start-ups has grown by virtually 800% (7.8 instances) since 2015, in comparison with 3.1 instances in Europe as an entire. 2020 is set to be a report 12 months for London’s influence tech firms, which have obtained $1.2bn in VC funding from January to October, already matching 2019 ranges. London’s influence corporations have additionally secured 429 offers between 2015 and 2020, greater than another metropolis globally.
San Francisco’s influence based mostly tech firms have additionally proven sturdy progress over the previous 5 years, with the information revealing that VC funding into its influence tech firms has virtually tripled (2.8 instances) from 2015 to 2020. Thus far this 12 months, SF-based influence tech firms attracted $1.7bn of VC funding in 2020 – greater than another metropolis globally. At a nationwide stage, the US obtained extra VC funding for influence tech firms than another nation prior to now 5 years, with traders pumping $35.8bn into US corporations since 2015, double the quantity invested into China ($16.8bn) and the UK ($6.1bn).
The analysis additionally discovered that UK capital has produced 241 influence start-ups since 2006, with 95 firms based in San Francisco. In London, ‘influence unicorns’ embody Octopus Power (inexperienced power), Arrival (zero-emission, public transportation autos) and Gousto (meals) and Babylon Well being (AI healthtech).
Local weather change and clear power options have attracted probably the most curiosity from traders in each cities, making up over 50% of general VC funding over the past 5 years. Funding rounds together with at the least one North American investor made up $234m of VC funding thus far this 12 months in London, up from $85m in 2018, and equating to a fifth of all VC funding into London’s influence startups.
Funding rounds for London influence firms involving North American traders in 2020 embody a $118m progress fairness spherical into Arrival by Blackrock, an $80m Sequence B spherical for COMPASS Pathways and a $25m Sequence C funding for Tractable.
In the meantime, Affect startups are crossing the pond in each instructions. Arrival is now working in Los Angeles, whereas Octopus Power launched within the US market in September after closing a $360m funding spherical in April and buying Silicon Valley-based startup Evolve Power. And San Francisco-based Allbirds, the sustainable shoe retailer, opened its first European flagship retailer in London in July 2018.
Commenting, Janet Coyle, managing director for enterprise, London & Companions stated: “San Francisco and London are two of the world’s prime hubs for innovation and expertise. However immediately’s figures additionally present that they’re main the way in which in creating purpose-driven firms striving to sort out a number of the most urgent environmental and social challenges.”