Investing in UK fintech

UK fintech

The UK's leading edge fintech firms provide extraordinary investment opportunities for international venture capital.

The UK's offer

  • Leading edge in fintech sectors such as payments, open banking, data and more
  • A fintech sector that is attracting funding from around the world - 68% of the total VC fintech funding in Europe
  • Rising overall fintech investment in the UK - 18% year on year
  • A dynamic fintech landscape with over 1600 fintech firms - predicted to double by 2030

Promoting UK-US co-investment in fintech

The UK's thriving UK venture capital sector provides outstanding opportunities to develop co-investment opportunities with trusted on-the-ground partners. The City of London Corporation is working to showcase the unique opportunity that the UK's leading edge fintech sector provides for international investors.

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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.

90% 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.

Record US venture capital investment into UK fintech

2019 was a record year for US VC investment into UK fintech firms. American investors are already involved in 44.4bn worth of deals into London-based companies alone in the first nine months of the year - up from $4.0bn in 2018.

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Financing growth

More fintech investment poured into the UK than any other European centre in 2018, with venture capital and private equity invested a record $3.3bn, putting the UK ahead of Germany at $716m and Switzerland $328m. Growth in funding is only accelerating - this represents an 18% increase year on year.

 

Chart showing growth of fintech investment

$3.04bn

Global venture capital invested in fintech

in the first ten months of 2019 alone

6x

Increase in VC investment

into UK fintech deals between 2013 and 2019

19%

Compounded annual growth rate

of global VC capital investment into UK fintech between 2015 and 2019

#1

Deloitte ranks London

as the top city worldwide for fintech

Portal to global capital

50% of fintech investment flowed in from overseas, largely North America (25%) and Europe (18%) in 2018

Portal to global capital

A world leading destination for investment

Worldwide only the US and China attract more fintech investment than the UK

A world leading destination for investment

A thriving tech sector

The wider tech sector attracted $7.9bn of venture capital investment in 2018 - more than the rest of Europe meaning a healthy pipeline of tech collaborators

A thriving tech sector

Everything you need

The UK offers you everything you need to grow your business.

We have a global outlook, which means we understand your business needs. The depth and breadth of our offer mean unparalleled opportunities for you to grow. Innovation is what we do - creating an inspirational ecosystem where you can thrive. 

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