Research shows that North American fund managers rank the UK first choice of overseas investment market
The City of London Corporation and Prequin have released new survey work demonstrating that North American venture capital (VC) investors with plans for overseas fintech investment, rank the UK as their leading choice of investment location outside their home market. Respondents also said that the UK is a rich source of fintech firms with dynamic founders and teams, and strong business strategies - both factors that are 'critical' for attracting their investment.
Key findings from the research
Venture capital fund managers in North America looking at opportunities to invest into fintech deals outside their home market over the next 24 months have ranked the UK as the top overseas which they are looking to invest into.
Europe (excluding the UK) ranked third, followed by Asia in fourth place.
When choosing fintech investment targets, North American fund managers care very much about target firms having the right qualities to achieve significant and sustainable future growth.
61% of respondents said they consider having confidence in the target firm’s founder and team is critical to their decision making, and 63% of respondents said having confidence in the target firm’s business model and strategy is critical.
of surveyed North American VCs agree that UK fintechs offered dynamic founding teams
North American fund managers viewed fintech opportunities in the UK favourably in satisfying criteria critical to their investment decision making.
90% of North America fund managers believe that impressive founders and teams can be found across UK fintech firms some or all of the time.
85% of North America fund managers believe that strong business models and strategies can be found across UK fintech firms some or all of the time.
North America fund managers are feeling confident about opportunities to co-invest with trusted UK fund managers in the same fundraising round.
Co-investment is an effective strategy for fund managers to achieve synergy, reduce risks and develop familiarity with a new region outside their home market. When foreign fund managers co-invest with UK fund managers into UK fintech deals, they benefit from the expertise, networks, and on-the-ground intelligence available to UK fund managers.
87% of North America respondents believe opportunities to co-invest with trusted UK fund managers can be found some or all of the time, highlighting the existing strong link between fund managers of the two regions and potential for further growth.