UK FinTech firms ‘raised more VC money than their European counterparts’

London Skyline

UK FinTech companies have raised more than $1bn (£825m) so far this year, with double the amount raised when compared to the same period in 2016.

That’s according to the latest Pitchbook data sourced by London & Partners, which also shows that, despite Brexit, London and the UK are attracting more FinTech investment than any other European city or country.

According to the data, 2017 is set to be a record year for venture capital investment into both London and UK FinTech.

The analysis shows that from Q1 to Q3 UK FinTech businesses attracted more investment (+17.5%) than the record levels reported during the same time period in 2015.

A breakdown of the data highlights that London’s FinTech companies accounted for more than 90% of all venture capital investment into UK financial technology firms this year.

London’s deputy mayor for business, Rajesh Agrawal, said: “London remains a world leader in FinTech and the companies on this trade delegation are at the forefront of developing cutting edge financial technologies. The fact that we have seen over £1bn worth of venture capital investment into London FinTech companies since the EU referendum vote offers further proof that global investors still believe London will remain a leading FinTech hub for many years to come.”

“Clearly Brexit poses major challenges, but London’s position as a global financial centre and world class technology hub is built upon strong foundations which cannot be replicated anywhere else. This highlights the need for a Brexit which enables London to maintain its place at the heart of the single market, as the continent’s financial capital.”

A look at Europe

London has also attracted significantly more VC investment than any other major European city. In fact, the UK capital accounts for five times more than Stockholm, its nearest competitor.

FinTech firms based in London also raised more than those in Paris, Frankfurt, Berlin and Amsterdam combined.

The global data available also proves that London raised more VC money than other major global FinTech hubs such as Singapore, Shanghai, Mumbai and Chicago.

San Francisco, Beijing and New York are, according to the data, the top three hubs for FinTech investment in the world. However, London, seems to be gaining ground and is now ranked fourth globally.

For more information on UK VC funding, check out our tech investment tracker