Brexit is on its way, and PSD2 is right around the corner for the EU, and while FIs and fintechs alike are preparing for these changes, one thing is certain: investors still think of London as Europe’s fintech hub. This is evident in a new report that shows VC investment in U.K.’s tech sector is higher than any other nation in the EU.
According to data gathered by London & Partners in a PitchBook report released today, venture capital investment in UK’s tech sector reached an all-time high of £2.99 billion ($4.05 billion) in 2017. Compare that with the £1.63 billion ($2.21 billion) of 2016. Europe’s total VC funding, based on the ten major cities including Amsterdam, Berlin and Paris reviewed in the report, was over £4.8 billion ($6.5 billion).
Fintech was the leading sector within this tech space. According to the report, UK fintech firms attracted an all-time high of £1.34 billion ($1.82 billion) in VC funding. Not only that, but among these fintechs, funding for startups accounted for a whopping 90% of all money raised by fintech space.
Among these fintechs, cross-border payments company TransferWise raised £211 million ($286 million), neo-bank Monzo raised £71 million ($96.2 million) and SME lending platform Funding Circle raised £81.9 million ($111 million), which incidentally just announced more plans for that funding (more on that here).
Investment in artificial intelligence startups also reached a record high, with about 50% more investment in 2017 than 2016.
Eileen Burbidge, partner at Passion Capital said in the announcement:
It’s a testament to our exceptional entrepreneurs that the UK tech sector continues to produce companies that are leading in the development of cutting edge technologies such as artificial intelligence and fintech. This environment and ecosystem of innovation presents tremendous opportunities for investors and will help to attract global investment into the UK’s digital economy for many years to come.
Read the full report here.
Learn more about fintechs at Bank Innovation 2018 in San Francisco on March 5-6. Request your invitation here.1 - Reader Likes This Post