Brexit has proved to be of little concern to investors, as the UK fintech industry is on track to beat previous venture capital investment records in 2017.
From quarter one to three in 2017, the UK fintech industry has raked in over 100 per cent more investment than in the same period in 2016, marking considerable acceleration in the year following the EU Referendum.
The UK fintech industry has gained more venture capital investment than the equivalent industries of every other European country, with London companies responsible for 90 per cent.
London & Partners has released this information in the run up to the world’s largest fintech conference, Money 20/20, including details of how the UK industry has shrugged off Brexit fears.
According to statistics released by London & Partners, UK fintech companies have actually raised $1.3 billion since the EU referendum, indicating that investors have not been daunted by the controversial result.
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.”
The UK stands in the highest echelon of the fintech world, holding the global third place at a value of $1.05bn, behind China ($1.4bn) and the United States ($4.8bn).
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“Clearly, Brexit poses major challenges – but London’s position as a global financial centre and world-class technology hub is built on strong foundations which cannot be replicated anywhere else: access to more software developers than Stockholm, Berlin and Dublin combined, Europe’s largest fintech accelerator Level 39, and the continent’s only truly global financial market.”
Nikolay Storonsky, CEO of Revolut added: “Whether you look at it from the perspective of talent, infrastructure, access to capital or the excellent regulatory environment, London is without question the best city in the world to launch a fintech startup. In just two years, Revolut has raised over $90m in investment and attracted over 900,000 users. There is no doubt in my mind that a large part of our success is down to choosing London and the UK as our headquarters and home,” said Agrawal.
