Over $1 billion (£825m) has been poured into the UK’s financial technology companies since the beginning of the year, with double the amount raised compared with the same period in 2016. The research also suggest that British companies are on course to raise more money in 2017 than the records set in 2015, with the data showing firms have already received more investment than the first three quarters of 2015.
London continues to provide a major boost to the UK’s fintech sector, with London firms raising over $980m (£769.41m) and accounting for over 90 per cent of all investment into fintech companies across the UK in 2017.
The findings have been released to coincide with an upcoming trade mission of London financial technology companies to Money 20/20, the world’s largest fintech conference. Led by the Mayor’s International Business Programme, a delegation of 12 of London’s fastest growing fintech companies will showcase themselves at the global trade show and explore investment and expansion opportunities in the US market.
Companies joining the delegation include foreign exchange banking app, Revolut, which recently raised $66m in Series B funding and AI based ID verification app Onfido that received $30m in funding in September this year. Other London fintech businesses on the trade mission include: Divido, Fluidly, Vega One, Fractal Labs, Monese, PixelPin, Smarkets, Starling Bank, Sthaler and Yoyo Wallet.
London‘s Deputy Mayor for Business, Rajesh Agrawal, said: “London remains a world leader in fintech and the companies on the Mayor’s trade delegation are at the forefront of this exciting sector. More than £1 billion in venture capital has been invested into London’s fintech sector since the EU referendum – this is yet more proof that global investors believe London will remain a leading fintech hub for many years to come.
In the past five years London’s fintech sector has received more than five times the amount of investment than any other major European city. Since 2012, London fintech companies attracted more VC money than Paris, Frankfurt, Berlin and Amsterdam combined.
London has also seen significantly more venture capital investment than many other global fintech hubs including Hong Kong, Mumbai and Singapore. Global investors still see San Francisco, Beijing and New York as the top three hubs for fintech but London is the fourth largest globally.
Separate research from specialist banking and investment firm, Investec, confirms London’s global appeal, with the findings showing that over one third of investors into London’s fintech sector in 2017 were based overseas. The data also shows that the proportion of non-EU based investors into London fintech companies has increased significantly since last year.
Kevin Chong, Investec‘s Co-Head of Emerging Companies said: “Reaffirming the global appeal of London’s Fintech sector, in 2017 we have seen a large number of international investors invest in London Fintechs who have not invested in London previously.”
James Layfield – Founder & CEO Blackbox Global Inc and London Technology ambassador said: “With a world leading financial centre and a thriving technology hub, we know that there’s a real desire for these teams to work together in London. It’s a perfect example of how the best minds in tech and finance can come together to develop the banking solutions of tomorrow, we have built solutions in London to address these challenges, from onboarding to culture, and funding to fast-tracking.”
At a national level, the United States leads the way for fintech investment with over $25 billion worth of VC funding over the last five years. China ranks second globally with a significant increase in investment over the last few years taking its total to over $14.5 billion. The UK remains the largest fintech hub in Europe and the third largest globally, with British firms attracting over $3.8 billion since 2012.
SOURCE London & Partners
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