The United Kingdom’s financial technology sector attracted a record £1.34bn in venture capital investment in 2017, with 90% of that money going to startup and early stage businesses based in London.
Arguably the flood of cash to London’s ‘fintech’ sector – as highlighted in a January report from London & Partners – isn’t particular surprising. The UK capital is not only a digital industry hub, it is also home to a financial and professional services sector that contributes around £176bn per year to the domestic economy, according to industry association, CityUK. The massive presence of financial services not provides a source of potential customers for fintech hopefuls, and also a huge pool of expert talent.
And as the London & Partners report underlines, there is not only considerable diversity in the sector but also a fair number of relatively young companies that can attract large investments. Those raising cash last year included peer2peer lending platform Funding Circle (£81.9m); payments company, Transferwise (£211m) and challenger bank, Monzo (£71m).