Start-up funding ‘back to normal levels’, says early Monzo investor

Cash is still flowing into Britain’s tech industry and funding is now "almost back to normal" and in some cases is more robust than before the pandemic, according to one of the industry’s top investors. 

Speaking at the Telegraph Technology Intelligence Live event, Passion Capital co-founder Eileen Burbridge, an early investor in financial technology company Monzo, also cautioned against overly restrictive rules on immigration after Britain leaves the European Union.  

"I want to see corridors, visas for immigration,” she said. “It can’t be limited to too many restrictive rules.”  

At the start of the pandemic, there were fears that funding for early stage businesses would dry up as venture investors turned off the spending taps that saw Britain’s tech companies raise nearly £11bn last year.   

But Ms Burbidge, who advises the Treasury on fintech, said: “Fundraising was severely impacted in the second quarter, and a little bit at the start of the third quarter, but what we are seeing now is fundraising and capital flows are almost back to normal and in some cases even more robust than they were during the pandemic.  

“While we are here in a second wave, I do see capital flows running again.”

@eileentso says it will "probably help" starting in cluster locations.

"There are some unique strengths the UK has. Fintech is one where there are great benefits in Britain.

"I don't think there's a limit to what founders can create – any sector is up for grabs"#TechIntel20 pic.twitter.com/V12aomWYgW

— Telegraph Technology Intelligence (@TelegraphTech) November 10, 2020

The remarks came after the launch of the Telegraph’s Tech Hot 100 list of UK start-up founders showed the combined paper wealth of Britain’s top technology start-up founders almost doubled this year to £8.5bn bn in 2020, up from £4.5bn in 2019.  

Schemes such as the Government’s Future Fund, which has matched private funding with taxpayer cash for early stage businesses, have also been kept open to applicants. The fund has backed companies to the tune of almost £800m this year.  

Ms Burbidge added: “The fact that is flowing again means people have a good sense of whether they will afford their levels of interest and confidence that the economy has a long-term focus on technology.”