Feeds

The IT industry has never had it so good

Record levels of investment. And the UK leads the way

  • alert
  • submit to reddit

The essential guide to IT transformation

The European IT industry attracted record levels of investment in 2000 - up 68 per cent from the year before to hit 11.5 billion euros (£7 billion), according to an extensive report just published by PricewaterhouseCoopers.

The amount of investment is also expected to increase by 32 per cent this year to 15.2 billion euros (£9.3 billion). Technology now accounts for nearly a third of all investment across all industries in Europe. In short, the IT industry has never had it so good.

And the UK in particular. It leads the investment league table with 26 per cent of the total (£1.83 billion) coming to Blighty. This is followed by France on 21 per cent, who leapfrog Germans this year, with 20 per cent.

Software companies are receiving the most funding (31 per cent of it) but the good news is that more investment than ever is going in young companies building the latest technology.

Europe still has a long way to go though to catch up with the US. The average deal in Europe was up slightly at 1.5 million euros but this is chickenfeed compared to the US average of 18.5 million euros.

However, due to several factors including the increase in entrepreneur culture in Europe, increased globalisation, huge growth in e-commerce and most importantly the emergence of Europe as the hotbed for the latest technologies - in particular mobiles phones - Europe looks like it will continue to close the gap on the US.

This doesn't mean the crazy days of VC candy-from-baby funding and IPOs every other week are coming back. According to PwC, VCs are going back to basics: management, money and markets.

The PwC report, entitled Money for Growth 2000 was the third of its kind from the Global Technology Industry Group. It was based on information from the European Private Equity and Venture Capital Association annual survey.

According to PwC, the fact that 1,400 VCs across 21 countries were quizzed makes the report "by far the most extensive and comprehensive survey ever undertaken of private equity and venture capital investments in EMEA". ®

5 things you didn’t know about cloud backup

More from The Register

next story
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?