UK fintech sector led way for VC investment in 2017
Figures compiled by Pitchbook for London & Partners show that the UK’s fintech sector led the way for VC investment in 2017, attracting a record £1.34 billion in funding.
Fintech start-ups in London were the main driver of the record figure, accounting for more than 90 per cent of all funding raised by the UK’s financial technology companies last year.
The figures showed that UK tech firms as a whole attracted £2.99 billion in venture capital funding in 2017, nearly double the amount invested in 2016, which stood at £1.63 billion.
The UK outperformed several countries in terms of the amount of venture capital funding raised last year, attracting nearly four times the amount than the £694 million that was raised by firms in Germany and more than tech firms in Sweden, France and Ireland combined.
London’s tech firms also attracted more venture capital investment than any other city in Europe last year, including Paris, Berlin and Amsterdam. Money transfer service TransferWise, peer-to-peer lending marketplace Funding Circle and challenger bank Monzo were amongst the London-based fintech firms that completed major funding rounds in 2017, raising £211 million, £81.9 million and £71 million respectively.
Commenting on the figures, Mayor of London Sadiq Khan said: “Today’s record investment figures are further proof that London is the undisputed tech capital of Europe and I am committed to ensuring we take over from Silicon Valley as the world’s leading tech hub.”