US Investments into UK Companies by Penningtons Manches

The UK’s software-based companies are the most popular destination for Silicon Valley investment, and have received £2.2b of funding from these firms since 2011. Life science companies were the next most invested in, taking £472m over the same period.
About Techcelerate Ventures

Tech Investment and Growth Advisory for Series A in the UK, operating in £150k to £5m investment market, working with #SaaS #FinTech #HealthTech #MarketPlaces and #PropTech companies.
company uk company invest investor deal West Coast GOLDEN TRIANGLE West Coast investor REPORT SILICON VALLEY business involved penningtons Manches tech number East Coast investor San Francisco billion growth year technology
www.penningtons.co.uk 
A REPORT ON US INVESTMENT 
INTO UK COMPANIES 
FROM THE GOLDEN GATE
TO THE GOLDEN TRIANGLE
The companies at the epicentre of this are part of sprawling ecosystems 
which include entrepreneurs, investors, evangelists and advisors.  
Each of these, and many more, contribute something to the development 
of the sector  all working together to supercharge growth, turning 
challenges into opportunities and opportunities into revenue.
As a law firm, we often act as a bridge between these key stakeholders 
 making connections and developing valuable relationships. 
Penningtons Manches has a long history of working with technology 
firms, their innovators and their investors.  We have always had a 
significant presence in tech hubs across London and the South East  
and more recently, on the West Coast of the United States.
We opened our San Francisco office over three years ago in a bid to 
better support our growing client base in the Bay Area and to develop 
meaningful connections between our US clients and contacts and the 
fast-growth tech companies in the UK that we represent.
Whether we're helping a promising UK company to find the support 
it needs to scale, or enabling a US business to invest in some of the 
UK and Europe's most exciting technology offerings, insight and 
understanding are key.
That's why we're delighted to present this research, From the Golden 
Gate to the Golden Triangle, our exploration of US investment into UK 
companies. What we've found has been both illuminating and reassuring 
at the same time.
It is heartening to see that West Coast investment into UK companies 
is at an all-time high. Our research, carried out in partnership with 
Beauhurst, has found there has been an impressive 252% increase in 
the number of deals since 2011: we saw investors from the West Coast 
involved in 74 deals in 2017, representing 1.08 billion in value.
Whether talking to US investors to understand what motivates them, or 
hearing how UK companies expect investments to impact them, we have 
sought to capture and create a clear picture of the inward investment 
landscape  something we continue to support to enable our clients  
to scale.
THERE HAS NEVER BEEN A MORE EXCITING 
TIME TO BE INVOLVED IN THE TECHNOLOGY 
INDUSTRY AND ITS IMPRESSIVE PACE OF CHANGE. 
WHETHER YOU'RE IN CAMBRIDGE OR CALIFORNIA, 
INNOVATION CLUSTERS ACROSS THE GLOBE ARE 
NURTURING GROUND-BREAKING TECHNOLOGIES 
AND CREATING WORLD-LEADING BUSINESSES. 
James Klein, partner  
Penningtons Manches
Welcome from Penningtons Manches
BUILDING STRONG CONNECTIONS
A REPORT ON US INVESTMENT INTO UK COMPANIES  |  3
06 
EXECUTIVE SUMMARY
08 
 SILICON VALLEY SETS ITS 
SIGHTS ON UK TECH 
CHAPTER 1
10 
 A UK COMPANY MAKING  
WAVES ON THE WEST COAST 
CASE STUDY
12 
 A WIDER PICTURE OF  
OVERSEAS INVESTMENT 
CHAPTER 2
16 
 WHY DO UK COMPANIES LOOK  
TO THE US FOR INVESTMENT? 
CHAPTER 3
19 
 NURTURING THIS  
VALUABLE NETWORK 
CONCLUSION
CONTENTS
4  |  A REPORT ON US INVESTMENT INTO UK COMPANIES
A REPORT ON US INVESTMENT INTO UK COMPANIES  |  5
Cultivating and maintaining this relationship is 
important  there is so much to be gained for 
everybody involved. The UK and Silicon Valley 
are two of the world's leading places to start 
and scale a technology business. London and the 
surrounding technology clusters have grown to 
become Europe's largest tech hub.
The Golden Triangle attracts some of the best 
global talent, produces world-class research and 
development and has a strong enterprise culture. 
Early-stage capital and business advice are now 
far more available than they were 10 years ago. 
The result is that the number of UK start-ups is 
now well above the European average. But there  
is still so much we can learn from established 
hubs in the States.
While we have had some success in creating world-
beating technology firms, we still lag behind other 
countries when it comes to ensuring our swathe of 
start-ups become strong and growing businesses. 
If we are to reap the rewards of this entrepreneurial 
revolution in terms of employment and national 
prosperity, it is critical a good number develop into 
thriving companies.
For the UK to produce these technology giants it 
needs the investment required to scale fast-growth 
businesses. US investors can help plug this gap. 
It's fantastic to see that funders from the United 
States made up 25% of total equity investment 
into UK companies last year. This will no doubt 
continue to rise over the coming years as the 
Golden Triangle gathers even more momentum 
and a larger profile in the States.
If companies can successfully attract investment 
from the US, they'll garner much more than 
capital. They'll tap into a wealth of experience and 
advice which will help them navigate the whirlwind 
of growth.
Valley investors have been around the block 
with start-ups and scale-ups, they know what 
challenges a company faces long before it does. 
From building internal leadership capacity 
and processes to attracting the right talent 
and winning contracts at home and overseas  
investors can provide invaluable support and 
access to a wider ecosystem.
Creating closer ties between Silicon Valley and 
the UK has been a personal mission of mine. 
When these two hubs meet, great things happen. 
It's fantastic to see so many invaluable ties being 
created and delivering meaningful results. Golden 
Gate, Golden Triangle is more than a phrase, it's a  
powerful combination and I look forward to  
seeing it flourish.
BRITAIN'S GOLDEN TRIANGLE IS A POWERHOUSE OF INGENUITY AND 
INNOVATION. THE COMPANIES LOCATED IN AND AROUND CAMBRIDGE, 
OXFORD AND LONDON GO TOE-TO-TOE WITH SOME OF THE BEST IN  
THE WORLD AND IT'S NOT SURPRISING TO SEE THAT INVESTORS  
IN SILICON VALLEY, AND ACROSS THE US, ARE PAYING CLOSE ATTENTION 
TO THE ENTREPRENEURIAL ACTIVITY ON THIS SIDE OF THE POND.
Sherry Coutu CBE, serial 
entrepreneur, investor and  
co-founder of Silicon Valley  
Comes to the UK
Foreword from Sherry Coutu CBE
GREAT THINGS HAPPEN WHEN 
TECH HUBS MEET
6  |  A REPORT ON US INVESTMENT INTO UK COMPANIES
THE UK COULD BE ENTERING  
A GOLDEN AGE OF SILICON VALLEY 
INVESTMENT. WE'RE SEEING MORE 
DEALS INVOLVING WEST COAST 
INVESTORS AND UK COMPANIES 
THAN EVER BEFORE, AS INVESTORS 
AND ACQUIRERS IN THE US LOOK 
FURTHER AFIELD TO FIND THE  
NEXT BILLION DOLLAR COMPANIES  
AND, IN DOING SO, SPREAD THEIR 
RISK PROFILE.
Our research suggests companies in the UK's 
Golden Triangle are taking the lion's share of this 
investment, particularly those in the software 
sector, which have benefited from 2.2 billion in 
funds since 2011.
Whilst West Coast investors were involved in more 
deals, East Coast investors put more money into  
UK companies overall  evidencing that, whilst 
Silicon Valley has its eye on the UK, tech hubs in 
the likes of New York and Boston do as well. 
We're seeing this as part of a wider trend of inward 
investment into UK companies. It would appear  
that Brexit has done little to put investors off and  
as long as the UK continues to attract the world's 
best talent, the flow of capital from the US looks set 
to continue over the coming years.
EXECUTIVE SUMMARY
GOLDEN GATE MEETS THE GOLDEN TRIANGLE
1.08  
BILLION
THE AMOUNT INVESTED INTO UK COMPANIES  
BY WEST COAST INVESTORS IN 2017
NUMBER OF DEALS 
INVOLVING WEST  
COAST INVESTORS  
AND UK COMPANIES  
IN 2017:
THE AMOUNT INVESTED BY WEST COAST INVESTORS  
INTO UK SOFTWARE COMPANIES SINCE 2011
2.2  
BILLION
THE INCREASE IN THE  
NUMBER OF DEALS BETWEEN 
SILICON VALLEY AND UK 
COMPANIES SINCE 2011:
252%
GREENOAKS CAPITAL 
MANAGEMENT:  
THE TOP US HEADQUARTERED 
INVESTOR BY TOTAL VALUE OF 
DEALS PARTICIPATED IN 
EIGHT
THE NUMBER OF DEALS 
INVOLVING 500 STARTUPS AND 
UK-BASED COMPANIES IN 2017
500 STARTUPS THE US HEADQUARTERED INVESTMENT FIRM INVOLVED IN 
THE MOST DEALS WITH UK COMPANIES IN 2017
WIDER US AND GLOBAL INVESTMENT TREND
62%
OVERALL INCREASE IN OVERSEAS 
INVESTMENT INTO UK COMPANIES IN 2017
1.31  
BILLION 
AMOUNT INVESTED BY EAST 
COAST INVESTORS INTO UK 
BUSINESSES IN 2017
33%
OF DEALS BY VALUE INVOLVED  
A NORTH AMERICAN INVESTOR 
25% INVOLVED A US INVESTOR
2.83  
BILLION 
AMOUNT CONTRIBUTED  
BY DEALS INVOLVING NORTH 
AMERICAN INVESTORS
373
EQUITY INVESTMENTS INVOLVING 
OVERSEAS INVESTORS IN TOTAL IN 2017
A REPORT ON US INVESTMENT INTO UK COMPANIES  |  7
Silicon Valley investment into UK tech is at an all-
time high. Our research has found that the number 
of deals involving West Coast investors and UK 
companies has increased by 252% since 2011. Last 
year, West Coast investors were involved in 74 
deals with UK companies, totalling 1.08 billion and 
representing 4.8% of all UK investments in 2017,  
up from 59 deals the previous year and 21 in 2011.
"The UK is the top European destination for talent 
and capital, creating a powerful ecosystem of 
technology companies and this hasn't escaped 
investors in the Valley and San Francisco that are 
always looking for the next big thing," says Russ 
Shaw, founder, Tech London Advocates and Global 
Tech Advocates. 
Unsurprisingly, it is the UK's software companies 
that have had the most investment from Silicon 
Valley and San Francisco-based investment firms. 
Since 2011, West Coast investors have put 2.2 
billion into software companies. Life sciences  
companies were the second most invested in, 
taking 472 million, with hardware companies and  
medical tech following with 207 million and  
101 million respectively. 
"These figures back up what we've seen and what 
we continue to see first-hand whilst on the ground 
in the Bay Area," says James Klein, partner, 
Penningtons Manches. 
"Over recent years we have noticed an increase in 
the levels of US interest and investment in the UK, 
which has a particularly strong footprint in finance, 
retail and the creative industries. This has fuelled 
the start-up space and produced many scalable  
and investable companies." 
Silicon Valley-based firm 500 Startups was the 
most prolific US investor in terms of deals done, 
making eight investments into UK companies in 
2017. "Great companies come from everywhere so 
it's important to get out of the Valley," says Matt 
Lerner, partner at 500 Startups. "The UK has an 
abundance of talent, lots of companies accessing 
global markets - or Europe at a minimum - and its 
fintech and health tech innovation is ahead of  
the Valley."
500 Startups, which counts UK-based Airbnb 
management service, Airsorted and content 
monetisation platform Skimlinks among its 
portfolio companies, is followed by Partech 
Ventures, which made six investments into UK-
based companies in 2017 and GV (formerly  
Google Ventures) which made five.
West Coast investors are looking beyond the Valley 
for a number of reasons but at the core is an 
understanding that technology is global and great 
ideas can be found anywhere. "Entrepreneurial 
talent and intellect is distributed evenly globally," 
says Josh Manchester, partner at US-based 
Champion Hills Labs. "You can find the right teams 
anywhere outside the US."
There are also a number of beneficial factors which 
draw US investors to the UK. "Common language is 
a huge benefit," continues Josh. "A lot of European 
talent comes to the UK and the university and hard 
science talent is very attractive."
 8  |  A REPORT ON US INVESTMENT INTO UK COMPANIES
01
SILICON VALLEY SETS  
ITS SIGHTS ON UK TECH
CHAPTER
WHAT DOES THE  
UK HAVE THAT  
US INVESTORS ARE 
INTERESTED IN
(as cited by US investors 
 in our interviews)
TECHNOLOGY TALENT
1
INVESTABLE HARD SCIENCE
2
STRONG INTELLECTUAL PROPERTY
3
A COMMON LANGUAGE
4
LOWER VALUATIONS
5
21
2011
20
2013
56
2015
36
2012
46
2014
74
2017
59
2016
NUMBER OF DEALS
YEAR
WEST COAST DEALS BY YEAR
TOTAL VALUE
SECTOR
WEST COAST DEALS BY VALUE 2011  2017
2,198M
SOFTWARE
207M
HARDWARE
58M
CLEAN TECH
472M
LIFE SCIENCE
101M
MEDICAL TECH
A REPORT ON US INVESTMENT INTO UK COMPANIES  |  9
with an online platform to carry out background checks and screening. 
d in Oxford by three Oxford University graduates.
sing
20k  fundraising
$4.5m fundraising
F
2015
F
2013
CrunchFund
ered
470k  valuation
n San Francisco
2017
F
$30m fundraising
Microsoft Ventures
Salesforce Ventures
ONFIDO PROVIDES EMPLOYERS WITH AN ONLINE PLATFORM TO CARRY 
OUT BACKGROUND CHECKS AND SCREENING. THE COMPANY WAS 
FOUNDED IN OXFORD BY THREE OXFORD UNIVERSITY GRADUATES.
COMPANY REGISTERED
CRUNCHFUND
MICROSOFT VENTURES
SALESFORCE VENTURES
$25M FUNDRAISING
$30M FUNDRAISING
20K FUNDRAISING
470K VALUATION
$4.5M FUNDRAISING
CRUNCHFUND
OPENED OFFICE IN SAN FRANCISCO
R
F
F
F
F
O
 10  |  A REPORT ON US INVESTMENT INTO UK COMPANIES
A UK COMPANY MAKING WAVES  
ON THE WEST COAST
CASE STUDY
ONFIDO
A REPORT ON US INVESTMENT INTO UK COMPANIES  |  11
"Onfido is a great Oxford success story 
that has now become a global business 
with offices in London, San Francisco 
and New Delhi. Two of the founders met 
at the university's Oxford Entrepreneurs 
society and they secured seed funding 
from Oxford University's Sad Business 
School.
"From these modest beginnings 
Onfido has grown to be a very exciting 
company in the artificial intelligence 
space. It has now received over  
$60 million in funding from flagship 
investors including Microsoft Ventures, 
Salesforce Ventures and Crunchfund."
Onfido founders Ruhul Amin, Husayn Kassai and Eamon Jubbawy
UK UNIVERSITIES 
ARE GENERATING 
WORLD-BEATING  
INNOVATION
Will Axtell, partner,  
Penningtons Manches.
Strong Silicon Valley investment into UK companies 
is part of a wider investment story which sees 
increases across the board. Our research has found 
that 2017 was a record year for levels of overseas 
investment into companies located in the UK, with 
373 equity investments involving at least one fund 
headquartered abroad  a 62% increase on 2016.
It's not just the number of deals that has experienced 
a rise, but also the value of these deals. Investors 
from outside the UK were involved in 5.9 billion 
worth of deals, a 187% rise on the previous year 
and eight times as much as the figure from 2011.
"Despite the threat of Brexit, the UK remains a 
safe bet for investors," says Russ Shaw. "Home to 
some of the world's best universities and a strong 
supporter of innovation, it has capitalised on its 
strengths to become a world leader in science 
and technology and this is clearly finding 
recognition among overseas investors."
Investors across Europe, Asia and the rest of the 
world have certainly played a part in this increase 
in deals, but North America was the most significant 
source of overseas investment for UK companies  
in 2017. 
Of the 8.27 billion worth of investments announced 
in 2017, 33% or 2.83 billion was contributed by 
deals involving at least one investor based in North 
America. 2.15 billion of this total involved US 
investors, representing 25% of all equity investment 
into UK companies in 2017. 20% or 1.7 billion 
involved investors based in Europe (excluding  
the UK). 
FOREIGN INVESTMENT LEVELS
AMOUNT INVESTED
NUMBER OF INVESTMENTS
736M
93
134
149
186
213
230
373
1,036M
814M
1,403M
2,074M
2,048M
5,874M
 12  |  A REPORT ON US INVESTMENT INTO UK COMPANIES
02
CHAPTER
A WIDER PICTURE OF  
OVERSEAS INVESTMENT
2011
2012
2013
2014
2015
2016
2017
East Coast investment is also at an all-time high
West Coast investors may have been involved in 
more deals, but East Coast investors have provided 
more capital. They invested 1.31 billion into UK 
companies in 2017.
The relationship between UK businesses and 
investors in the likes of New York and Boston is 
certainly getting stronger. Between 2011 and 2017, 
the total number of deals by East Coast investors 
into UK companies rose by 48% from 29 to 56. 
These deals represented 3.8% of all UK investment 
deals in 2017. 
"New York can often be a convenient stopping off 
point for companies on their way to the West Coast 
or the rest of the US," says Brent Ahrens, partner 
at Canaan Partners. "For example, onefinestay 
expanded from London to Paris and New York 
before moving to the rest of the US."
West Coast investors put more capital into software 
companies than their East Coast peers, who 
invested 1.95 billion in the period between 2011 
and 2017, but East Coast investors were more 
prolific in their support of life sciences, providing 
46% (769 million) of all capital invested by the US 
into this sector of UK tech. Hardware tech (313 
million), materials tech (188 million) and medical 
tech (144 million) followed. 
With Boston's strength in life sciences, it follows 
that investors based there have a keen interest in 
these kinds of companies, largely based around 
the UK's Cambridge and Oxford areas. It's also 
interesting to note that whilst East Coast investors 
did deals in the materials and nanotechnology 
sectors, those on the West Coast did not. 
56
49
62
39
39
29
38
2011
2013
2015
2012
2014
2017
2016
NUMBER OF DEALS
YEAR
EAST COAST DEALS BY YEAR
A REPORT ON US INVESTMENT INTO UK COMPANIES  |  13
US INVESTMENT BY COMPANY SECTOR (VALUE, 2011 TO 2017)
TOTAL VALUE
SECTOR
1,948M
2,198M
340M
  SOFTWARE
769M
472M
442M
  LIFE SCIENCE
313M
207M
36M
10M
23M
15M
  HARDWARE
144M
101M
58M
108M
9M
 MEDICAL TECH
  CLEAN TECH
  NANOTECH
188M
  MATERIALS TECH
EAST COAST
WEST COAST
REST OF US
COMPANY SIZE AT TIME OF 
FUNDRAISINGS  
(UK COMPANIES 2011-2017)
NON-US  
DEALS
34%
20%
47%
US  
DEALS
42%
41%
17%
SEED
VENTURE
GROWTH
 14  |  A REPORT ON US INVESTMENT INTO UK COMPANIES
US INVESTORS EQUALLY 
INTERESTED IN GROWTH AND 
VENTURE-STAGE COMPANIES
The overall investment by US firms into UK 
companies illustrates a split in preference between 
those at venture-stage and at growth-stage. 
Almost half (42%) and (41%) went to companies at 
venture and growth-stage, with only 17% going to 
seed-stage companies. 
A similar story is evidenced with Asian investors, 
with 37% of deals involving at least one Asian 
investor going to companies at the growth-stage. 
"Oxford Nanopore's recent 100 million investment 
from investors in the Asia-Pacific region is a great 
example of this in action," says Will Axtell, partner, 
Penningtons Manches. "The funding round valued 
the fast-growing biotechnology company at 1.5 
billion."
Deals involving US investors tend to be large: 
the average value in 2017 was 18.2 million. So it 
makes sense that the majority of US investment 
is going to companies at a later stage, which are 
likely to be seeking larger amounts. 
The UK's Golden Triangle in the spotlight
The Golden Triangle  the cluster formed by 
London, Oxford and Cambridge  plays host to 
the majority of the UK's most innovative tech 
companies. It is no surprise that this geography has 
been of most interest to US investors, keen to back 
UK ingenuity. 
Our research has found that between 2011 and 
2017, 79% of all US investment into UK companies 
went to the those in the Golden Triangle. In 2017, 
companies in this geography received record 
levels of capital from US investors, with 2.1 billion 
flowing into companies there  a 64% increase on 
the year before.
"The UK is home to some amazing innovations, 
particularly in the tech and life sciences spaces," 
says Ross McNaughton, partner, Penningtons 
Manches. "Many of those emerging growth 
companies have their eye on the US as a place to 
expand, and taking US investment is a natural step 
to help achieve those goals."
One of the trends we are seeing which contributed 
to this sizable increase, is the rise in deals worth 
50 million or more. 2017 saw US investors 
involved in 10 of these  contributing 1.14 billion 
in funds for businesses in the Golden Triangle.  
The average value of these individual deals was 
113.8 million. 
Surprisingly, this average is 29 million less than 
the global average of the larger deals into UK 
companies, suggesting that the biggest deals are 
actually being done by investors outside the US. 
There were 29 deals worth 50 million and over 
with Golden Triangle companies in 2017, meaning 
that just over a third came from US investors.
521M
34
60
54
79
100
99
114
359M
400M
933M
1,316M
1,338M
2,164M
US INVESTMENT INTO  
THE GOLDEN TRIANGLE  
OVER TIME
AMOUNT INVESTED
NUMBER OF INVESTMENTS
2011
2012
2013
2014
2015
2016
2017
A REPORT ON US INVESTMENT INTO UK COMPANIES  |  15
We've seen that US investment into UK companies 
is on the rise and we've explored some of the 
reasons why firms in the US are interested in the 
technology coming out of the Golden Triangle.  
We also wanted to look into some of the reasons 
that companies in London, Oxford and Cambridge 
are keen to do deals with US investors and how 
they believe such transactions might be affected in 
the future. 
Gaining greater access to US markets looks to be 
the largest driver for UK businesses without any 
existing US backers. In fact, 83% of non US-backed 
companies that we surveyed cited access to 
markets as a reason to take US investment.
Access to the US market was followed by technical 
expertise of the investor (46%) and favourable 
investment climate (44%) by those without existing 
US investment.
For those UK companies that have already done 
deals with US-based firms, their primary driver for 
taking additional US investment was an existing 
relationship with the investor  48% cited this as 
a reason, suggesting that once a relationship has 
been formed, it can lead to further investment at a 
later date.
Similar to those without any US investment, 
access to US markets (35%), technical expertise 
of investors (28%) and a favourable investment 
climate (25%) were the second, third and fourth 
largest drivers to seek further US investment.
 16  |  A REPORT ON US INVESTMENT INTO UK COMPANIES
03
CHAPTER
WHY DO UK COMPANIES LOOK TO  
THE US FOR INVESTMENT?
US-BACKED COMPANIES
48%
35%
28%
25%
20%
13%
Existing relationship with investor
Access to US markets
Technical expertise of investor
Favourable investment climate for the investor
Other
Existing business operations in the US
NON US-BACKED COMPANIES
83%
46%
44%
7%
22%
Access to US markets
Technical expertise of investor
Favourable investment climate for the investor
Other
Existing business operations in the US
A REPORT ON US INVESTMENT INTO UK COMPANIES  |  17
Has the exchange rate had an effect on 
investment?
The devaluation of the pound has reportedly 
created a surge in British exports since the Brexit 
vote almost two years ago, but do UK companies 
think this has affected their ability to attract 
investment from the US? According to our survey, 
generally, the companies which have raised smaller 
amounts believe devaluation has had a beneficial 
effect.
All (100%) of the companies surveyed that have 
raised between 100,000 and 500,000 believe 
currency fluctuations have been beneficial. This 
drops down to 67% for those that have raised 
between 500,000 - 1 million, down to 42% for 
those in the 1 million - 5 million bracket and 
keeps going down. The only outlier here is that a 
minority (33%) of companies that have raised the 
smallest amount surveyed, less than 100,000, 
believe fluctuations have been beneficial.
We assume that companies that have raised 
smaller amounts over time are seeking smaller 
rounds of investment. This suggests that investors 
contributing smaller amounts are more sensitive 
to currency fluctuations and therefore need 
favourable exchange rates to make the transactions 
worthwhile.
"Currency fluctuations play a minor role in 
motivating investors at the early-stage. You 
don't want to take a 20% haircut," says Brent 
Ahrens, partner at Canaan Partners. "Later-stage 
companies can hedge. But overall, if the opportunity 
is good, you get in when you can."
Have political events had an impact on investment 
from the US?
From the Brexit vote, to President Trump's election 
and the UK government's performance in the 2017 
election, we wanted to see if UK companies felt 
that notable political events had an impact on their 
ability to attract US investment.
Overall, not many companies feel these events have 
made US investors more likely to do deals. The 
majority are split between thinking political events 
have had no effect and thinking political events 
have made investors less likely to do deals.
Over half (54%) of UK companies felt the 2017 UK 
general election result had no impact on investor 
decisions, 45% however, felt it had made them 
less likely to invest. The Brexit vote had a similar 
breakdown, with 46% of companies feeling the 
prospect of the UK leaving the EU had no effect  
and 45% believing it had put US investors off.
"Brexit hasn't had a huge impact," says Suranga 
Chandratillake, partner at Balderton Capital. "The 
ability to hire people is a concern because these 
companies are all about people but it's too early  
to tell if this will be impacted."
POLITICAL EVENTS
What effect do you think the prospect of the UK 
leaving the European Union has had on US investors 
looking to invest in the UK?
It has made them more likely to invest
It has made them less likely to invest
It has not had an impact
ALL UK
46%
9%
45%
CURRENCY FLUCTUATIONS
Have you found currency fluctuations beneficial to raising 
investment from US investors?
Total amount raised by company throughout its lifetime
No
Yes
67%33%<100K100K-500K500K-1M1M-5M5M-10M10M-50M67%42%33%30%100%33%58%67%70%
 18  |  A REPORT ON US INVESTMENT INTO UK COMPANIES
IT IS CLEAR THAT UK COMPANIES, 
PARTICULARLY THOSE BASED IN  
THE GOLDEN TRIANGLE, ARE 
BENEFITING FROM A SIGNIFICANT 
INCREASE IN INVESTMENT FROM 
SILICON VALLEY AND THE WEST 
COAST OF THE US. 
As home to the world's number one technology 
hub, the West Coast has a wealth of world-leading 
companies but also an established ecosystem of 
investors, many of whom are keen to look beyond 
their local area and find fast-growth companies 
here in the UK.
It's heartening to see a similar story between  
East Coast investors and UK companies. Last 
year surpassed expectations and became a record 
breaking year in terms of overall inward investment 
for the UK.  
We see no reason for this to slow down any 
time soon. The UK is brimming with innovation, 
particularly in sectors such as augmented and 
virtual reality, artificial intelligence and fintech. As 
more relationships between US investors and the 
Golden Triangle are developed and the number of 
scalable businesses increases, this will likely lead 
to further deals and we expect to see even more 
activity over the next five years.
The UK's rich talent pool has been cited by US 
investors as one of the primary reasons they are 
attracted to invest in the Golden Triangle. With this 
in mind, we absolutely must ensure that the UK's 
ability to welcome global talent continues as the 
country transitions to life outside of the EU. Along 
with talent, our strength in developing investable 
hard science and our protected intellectual property 
landscape are also assets that we must continue 
to nurture.
No one can say what the future holds, but it is 
our mission to continue bridging the gap between 
high-growth UK companies and the US investors 
looking to support them. We understand the power 
of connections and we have worked hard to create 
valuable relationships with investors and innovative 
businesses on both sides of the Atlantic. 
So whether we're helping British businesses to 
speak the right language to attract US investors, 
or making the powerful introductions between our 
US and UK clients, we're in a fantastic position to 
support this burgeoning network and look forward 
to seeing this boom in investment continue.
A REPORT ON US INVESTMENT INTO UK COMPANIES  |  19
Conclusion
NURTURING THIS  
VALUABLE NETWORK
ABOUT THIS REPORT
DATA
This report has been written using data collected 
and created by Beauhurst. Penningtons Manches 
commissioned Beauhurst to provide a reference 
of facts and figures on the levels of US investment 
into businesses in the UK.
Beauhurst's proprietary sector and stage 
classifications are explained below. For further 
information on these classifications or any of the 
data that underlies this report, contact Beauhurst. 
Data for this report was finalised on 31 January 
2018.
GLOSSARY
Seed: an early-stage company, generally pre-
revenue, that has received a small amount  
of investment.
Venture: a company with a more developed 
proposition, generating revenue but usually pre-
profit, that has received considerable investment, 
usually from funds/organised investors.
Growth: a company with an established product, 
generating revenue and usually profitable  
(even if re-investing that profit), that has received 
considerable investment from multiple types  
of investor.
REPORT METHODOLOGY
This report looks at the equity investment received 
by companies located in the United Kingdom. 
Company stage: Beauhurst categorises companies 
into six stages of evolution (seed, venture, growth, 
zombie, exited, dead) using over 40 proprietary 
criteria, which vary based on the complexity of the 
intellectual property the company is developing. 
For example, Beauhurst uses different criteria to 
evaluate a pharmaceutical company than for a 
software company. No one criterion is enough to 
determine stage of evolution, so we take a balanced 
view with each decision. Rarely, a company may 
skip a stage, going from seed to growth, depending 
on how it is doing. 
Company sector: Beauhurst tags companies with  
as many sectors from their proprietary sector matrix 
as appropriate, but does not order or prioritise the 
sectors attached to a company. The top-level sectors 
in the matrix are: agriculture, forestry and fishing; 
energy; leisure and entertainment; retail; technology/
IP-based businesses; telecommunications service; 
tradespeople; transportation operators; built 
environment and infrastructure; business and 
professional services; craft industries; industrials; 
media; personal services; supply chain; and other.
Equity investment: Beauhurst monitors thousands 
of sources to find announced equity investments, 
which is often the most timely declaration of a 
deal. More than 50% of deals, however, are not 
announced. To find these deals we look at SH01s 
(a share allotment form) filed at Companies House. 
We also use these SH01s to calculate a company's 
pre- and post-money valuations. 
Investors: We attribute equity investments to 
however many investors were involved in the deal 
provided they received new shares, regardless  
of the number or value of shares received.  
Investor nationalities are determined using head 
office locations.
 20  |  A REPORT ON US INVESTMENT INTO UK COMPANIES
ABOUT BEAUHURST
Beauhurst is a searchable database of the UK's 
high-growth companies and their investors.
Our platform is trusted by thousands of 
professionals to help them find, research and 
monitor the most ambitious businesses in  
Britain. We collect data on every company that 
meets our unique criteria of high-growth: from 
equity-backed start-ups to accelerator attendees, 
academic spinouts and fast-growing scale-ups. 
This data is used by our clients at organisations 
including law firms, technology transfer offices, 
university enterprise education departments, 
venture capital firms, corporate finance houses, 
LEPs, growth hubs and many more.
Our data is also used by journalists and researchers 
who seek to understand the high-growth economy, 
and it powers studies by major organisations  
including the British Business Bank, HM Treasury, 
Innovate UK, and the ScaleUp Institute  to help 
them develop effective policy. We often work with 
organisations to help them use and analyse our 
data and to produce bespoke reports that answer 
their specific research questions.
We believe good data is the key to making better 
investments, faster decisions and more effective 
interventions. With the right data we can help 
support the UK's world-leading entrepreneurial 
ecosystem and help more companies start up and 
scale up.
For more information and a free demonstration 
of the platform, visit beauhurst.com
CONTRIBUTORS
Henry Whorwood  
Ella Halmari 
Jake Ford
A REPORT ON US INVESTMENT INTO UK COMPANIES  |  21
 22  |  A REPORT ON US INVESTMENT INTO UK COMPANIES
ABOUT PENNINGTONS MANCHES
Penningtons Manches LLP is one of the UK's 
leading law firms, with seven offices including a 
City of London headquarters and a presence in 
San Francisco. With over 100 partners and some 
600 members of staff, we are acknowledged as 
a dynamic and forward-thinking practice which 
combines comprehensive legal services with a 
responsive and flexible approach.
We have a broad international focus supported by 
well-established links with law firms throughout the 
world. As a member of Multilaw and the European 
Law Group, we work with lawyers in over 100 
countries, and many of our experts play leading  
roles in various international bodies.
Our specialist, multidisciplinary teams concentrate 
on a range of industry sectors, including technology, 
life sciences, education, banking, finance and 
financial services regulation, real estate, retail  
and international wealth.
Through our active involvement with a number of 
the UK's trade bodies, we are well placed to advise 
on all aspects of inward investment, from technology 
start-ups to large international relocations. We have 
particular expertise in supporting US clients seeking 
to do business in the UK and Europe. In addition, our 
India group provides expert advice on entry and exit 
strategies for the Indian market and investments 
from India into the UK and Europe. Where problems 
occur, in any jurisdiction, our international litigation 
lawyers are able to recommend effective strategies 
at an early stage.
We represent a growing list of international  
clients  ranging from private individuals, promoter-
owned businesses and start-ups to multinational 
corporations, public companies, professional 
partnerships, banks and financial institutions.
   They are an extremely competent and  
accomplished set of people and are  
very good to work with; they are highly  
attuned to the customers' needs.
Chambers UK  2018 edition
   Particularly stands out for its strength  
in complex and high-value transactional  
matters. Acts for an impressive array  
of national and international clients.
Chambers UK  2018 edition
FIND OUT MORE
For further information, visit us at www.penningtons.co.uk where you will find comprehensive  
contact details for all our lawyers as well as our latest news, insights and publications. 
Alternatively, e-mail us at info@penningtons.co.uk
Penningtons Manches LLP is a limited liability partnership registered in England and Wales 
with registered number OC311575. San Francisco is an office of Penningtons Manches (California) LLP, 
a California registered limited liability partnership with number 202016025001.  
www.penningtons.co.uk
LONDON
125 Wood Street
London EC2V 7AW
T: +44 (0)20 7457 3000
F: +44 (0)20 7457 3240
DX: 42605 Cheapside
BASINGSTOKE
da Vinci House
Basing View
Basingstoke
Hampshire RG21 4EQ
T: +44 (0)1256 407100
F: +44 (0)1256 479425
DX: 148600 Basingstoke 21
CAMBRIDGE
Clarendon House
Clarendon Road
Cambridge
Cambridgeshire CB2 8FH
T: +44 (0)1223 465465
F: +44 (0)1223 465400
DX: 131971 Cambridge 6
GUILDFORD
31 Chertsey Street
Guildford
Surrey GU1 4HD
T: +44 (0)1483 791800
F: +44 (0)1483 424177
DX: 2405 Guildford
OXFORD
9400 Garsington Road
Oxford Business Park
Oxford
Oxfordshire OX4 2HN
T: +44 (0)1865 722106
F: +44 (0)1865 201012
DX: 155710 Oxford 13
READING
Apex Plaza
Forbury Road
Reading
Berkshire RG1 1AX
T: +44 (0)118 982 2640
F: +44 (0)118 982 2641
DX: 117883 Reading
USA
SAN FRANCISCO
535 Mission Street
14th Floor
San Francisco
CA 94105
T: +1 415 712 2869