The UK's technology sector has seen nearly $10bn of investment in venture capital (VC) since the creation of Tech City UK in 2010.
Analysis carried out by London & Partners revealed that 63 percent of the investment has been channelled into London-based companies, indicating how the nation's capital is a hotbed for the UK's technology industry.
VC investment jumped by 70 percent on 2014, rising from $2.1bn to $3.6bn and marking a record year.
This rise in investment was driven by London's healthy financial technology (fintech) sector, which has seen booming growth over recent years.
The hike in investment particularly in the capital was to be expected, according to London mayor Boris Johnson.
"With a flourishing tech scene and one of the world's leading financial centres, it is no surprise to see that London's tech companies are attracting record levels of investment," he said.
"Our world-class talent pool and our culture of innovation and entrepreneurial spirit are helping the sector to grow from strength to strength. We can expect the capital's tech sector to continue to generate jobs and growth for the city's economy for many years to come."
The mayor's words are lent credence by technology startups such as e-commerce firm FarFetch, which secured $86m in funding, and design product website Made.com, which received $60m.
This hefty VC investment in the UK technology sector is in part down to local investors ploughing money into London companies, but nearly a third of the cash came from US firms looking to diversify investment beyond the technology hubs of Silicon Valley and the US west coast.
Gordon Innes, chief executive of London & Partners, told V3 that investors are attracted to London companies for several reasons, and not just the technology sector's growth in the capital.
"London is the fastest growing tech hub in Europe. As a result, the capital is now home to a number of the UK's most exciting startups and growth companies, offering investors potential for high returns on their investments," he said.
"Investors are also attracted to London's tech scene for its diversity. From fashion tech to fintech, London has developed clusters of innovative companies, offering investors a chance to widen their portfolios.
"London's status as a world leader in fintech is demonstrated by the number of investments in such businesses. Almost a quarter of all 2015 investments flowed into fintech companies such as WorldRemit, TransferWise and Funding Circle."
Innes also noted that London is one of the world's leading financial centres with access to global markets, making it an attractive place to do business and thereby an attractive marketplace for investors.
"Ultimately it is a virtuous circle. If our startups continue to scale, we will see more capital invested back into the tech sector to fund the next wave of growth businesses," he said.
Some may be concerned that the investment and growth in the UK's technology industry is too centred on London, but Innes pointed out that this also helps the wider sector beyond the capital to grow.
"While London's tech sector accounted for over 60 percent of all VC investment into the UK, evidence suggests that when London grows the rest of the country grows," he said.
"For example, we have already seen some regional success stories with companies such as Skyscanner (Edinburgh) and Atom Bank (Durham) attracting significant funding. But London's pulling power and strong brand mean it has a vital role to play as an investment gateway to the rest of the UK."
Initiatives like the London Stock Exchange Elite scheme aimed at turning technology startups into high-growth companies make it likely that investment in the sector will grow yet again in 2016.
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