The FT analyzes the growing London VC space and potential for startups. It reveals that London's venture capital funds are progressively getting larger. Since the beginning of 2014, approximately $900m has been raised for London tech funds. Additionally Greylock has launched a $200m fund (83North) and Google Ventures launched a $125m London fund last year.
The analysis shows that since 2010 about 25 new venture capital funds have been established in London. The data focuses on those funds that have not seen an “exit”, meaning the companies in the VC firm’s investment portfolio have not yet been sold or achieved an IPO. Most of the money is focused on investment in fledgling tech groups in Europe, including the UK. Over the past five years, US venture capital funds have raised $96bn, according to the National Venture Capital Association, and have drawn on existing cash on hand to invest a total of $160bn, $70bn of it in Silicon Valley. But like Silicon Valley’s established VCs, London’s nascent funds are gambling on the long-term growth of the region’s start-up scene.