For those searching for green shoots of recovery, new research from investment advisors Ascendant provides positive news. Investment in UK and Irish tech businesses hit £129m in Q2 – up from £115m in Q1.

What is more interesting is where this investment is going – and where it is coming from. The market for raising large chunks of money has collapsed, with a 61 per cent drop in companies receiving more than £5m. In contrast, there has only been a 9 per cent drop in deals under £5m. Clearly, smaller companies are having more success at finding investment, which is backed up by a quick look at the sources of money. Private angel investors and regional development agencies/government funds are maintaining their level of investment while larger VCs cut back.

This has far-reaching potential implications – regional investment could redraw the country’s tech map and create new funding hotspots for emerging technologies. Definitely a trend to watch as we come out of recession………