Britain's technology sector is attracting record sums of foreign investment, despite fears that its looming withdrawal from the European Union could stifle growth in this sector over the coming years.

According to new research from industry body Tech Nation, the sector is on target to exceed $11 billion worth of investment by the end of 2019. Last year, UK tech firms raised $8.7 billion from investors.

It's estimated that the sector attracts $1 billion a month from both foreign and domestic investors, which is one and a half times higher than 2018 statistics. In a media announcement, Tech Nation described the UK as one of the "most attractive and dynamic markets in Europe".

New developments in areas such as artificial intelligence are fueling this growth. George Windsor, head of insights at Tech Nation, tells IDG Connect: "Investments in emerging technologies such as AI have rocketed - in fact, venture capital investment into AI increased by over sixfold last year.

"Hubs like Newcastle upon Tyne, have seen the fastest rates of growth in AI investment, followed by established clusters such as Cambridge and Oxford."

He believes that interest in emerging technologies from investors will continue. "We expect to see a deepening of investment into technologies like AI, and Blockchain, as their applications to grand global challenges such as ageing and mobility become more prolific."

Growing foreign investment

In recent times, Brexit has caused great uncertainty for businesses and investors. However, at present, this doesn't seem to be affecting global interest in British technology and innovations.

Of the $6.7 billion of investment raised between January and July of this year, 55% of it ($3.7 billion) came from American and Asdian investors. Tech Nation attributes this to the success of "billion dollar tech companies such as energy supplier OVO Energy and food delivery startup Deliveroo".

Britain is also outflanking other European countries when it comes to inward investment, having achieved twice the value of US and Asian investments since 2013 compared to Germany and six times as many as those made in France.

The number of high-value deals is also growing, with $1.9 billion of investment being raised from deals totalling $100 million or more in the second quarter of 2019. London, understandably, is a hotspot for deals of this size. And 92% of them involved a foreign investor.

Windsor believes that the success of the UK's tech sector comes down to the fact it is renowned for its innovations globally. He says: "Connected clusters, communities and businesses enable ideas and learning to be shared, this has played its part in the rapid scaleup growth we've seen over the last year."

UK tech companies are breaking new ground globally, claims Windsor. He explains: "The UK is behind only the US and China for total number of unicorns created. London ranks second to the Bay Area for the number of fintech unicorns, at 18. But there are unicorns across the country - in fact, UK tech has created more $1bn companies than any other European country and Israel."

Taking on the US

The UK isn't just giving European countries a run for their money in terms of technology. According to Tech Nation, Britain has now overtaken the US for foreign investment per capita. Windsor says that ambitious UK tech companies are born global and that the connections they form reflect this international focus.

He says: "This means that companies in the UK must be open, and transparent, which has had many positive benefits for the ecosystem here. A culture of open data, and commonly owned information is reinforced by socially responsible tech innovations."

One area in which British tech companies are particularly triumphing is tech-for-social-good.

Windsor explains: "They were worth £2.3 billion in 2018, with a turnover of £732 million - larger than the amount generated by the manufacture of consumer electronics in the UK (£634 million). This unique characteristic of UK tech positions the country for a future where profit and purpose will sit hand in hand."

New opportunities

Rising investment in technology is creating heaps of benefits for everyone, too. The top 30 foreign-funded companies, including StarlingBank, Skyscanner, Darktrace and Checkout.com, have created over 5000 new jobs collectively.

In 2016, 10,100 people were working for these leading British tech firms. In 2018, this number increased to 13,600, and now it sits at 14,900 and growing in 2019. Overall, 2.1 million Brits work in the technology sector, and digital tech roles offer salaries 10% higher than in other industries.

But you don't necessarily have to be a computer whizz to find success in the tech sector. In 2018, 230,000 non-tech jobs - such as human resources, marketing and communications - were advertised at tech firms.

"Ambitious tech entrepreneurs across the country are more networked than ever, and they are accelerating growth through international connections," says Windsor. An exploration of companies, communities and technologies uncovers the pioneers in this era of global tech, and shows that investment in, and growth of these companies has created millions of high value jobs.

"There are now over 2.1m people working in the digital tech economy, and 4.2m digital economy jobs were advertised in 2018 - suggesting that this trend of job creation continues to skyrocket."

The question often asked, though, is whether Britain's exit from the EU will cause a brain drain in the industry and impede growth. Windsor claims that Brexit reinforces the need for connectivity.

He says: "We know that UK tech companies are tapping into large and emerging markets, and this activity feeds back. Flows of investment, people, knowledge and services are burgeoning - greater now than they ever have been in tech."

Although investment in UK tech is quickly growing, Windsor urges the industry to avoid being complacent. He continues: "There will be much work to do to continue the prosperous relationships UK companies have across the world."