Fintech investment reaches two-year high in 2017, report shows
Fintech investment between the UK and mainland Europe reached a two-year high in 2017 despite the uncertainties over Brexit, according to a report from professional services and Big Four firm KPMG.
The report showed that fintechs in the UK attracted $226 million in venture capital (VC) funding in the first quarter of the year, up by 28 per cent from $178 million in the fourth quarter of 2016.
Fintech investment reached a two-year high in the first quarter of 2017, with mainland Europe investing $212 million into UK fintechs, whilst fintech investment in continental Europe reached its highest level since 2014, with UK investors participating in $428 million of VC financing in start-ups.
The UK’s fintech sector also received support from US VCs, with $192 million being invested in businesses, an increase on the total amount invested last year, which stood at $128 million.
The UK currently accounts for half of the top ten fintech investments, with investments in challenger banks also reaching a high. Google Venture invested $25 million in London-based payment platform Currency Cloud, whilst challenger banks Atom and Monzo raised $103 million and $28 million respectively.
Commenting on KPMG’s report, KPMG Co-Head of Tech Growth Patrick Imbach said that it is clear that any uncertainty around Brexit seen last year has, at least for now, dissipated, and it is particularly promising to see a healthy level of mutual interest between Britain and Europe in light of both of their chaotic political agendas.
He said that global investors might see value here given the depreciation of the pound, or they might be reassured by the level of innovation and regulatory support for start-ups taking place in Britain.
He added that regardless of the cause, the beginning of 2017 holds promise for British fintech.