The amount of capital invested in startups around the world soared by more than 90% from 2013 to 2014. In the United Kingdom, we recorded 290 deals worth a combined $1.2 billion placing the country in fourth behind the United States, China, and India in terms of the amount of investment received for its startups. There are 10 who standout for being the most funded startups in the UK last year, 5 of which are London based.
Borro and Powa Technologies are two London-based businesses that are holding a commanding lead over all the other most funded startups in the UK in 2014. First up we have Borro, which helps provide loans of up to $2 million and already has operations in the UK and in the US. They raised $112 million in a Series D funding round from Victory Park Capital with the primary aim to further expand in their core markets, UK and US.
At a close second is Powa Technologies founded by Dan Wagner in 2007, which raised a combined $100 million from two funding rounds, a Series B in February and a Series C in November raising the value of the business to $2.7 billion. Powa Technologies aims to use this investment in order to drive adoption of its payments platform in the United States as the competition with Square and other similar businesses heats up.
Rounding up the top 3 is Funding Circle, another London based startup, which raised $65 million in a Series D round from Index Ventures, Ribbit Capital, Union Square Ventures, and Accel Partners in July. Similar to Borro, Funding Circle is a FinTech company focused on loans for small businesses.
This latest round of the most funded startups in the UK in 2014 only serves to show the continued dominance of London as a hub of tech innovation in the country with half of the top 10 based there. And it also emphasizes the strength of finance technology in the United Kingdom as the top 3 are either directly involved in the space, like Borro and Funding Circle, or are tied to it through what their platform enables, like Powa Technologies.