Menu visibility control

Video

Events

Startup Surgery

Most Recent

Need to Know

Here’s how your tech firm can exploit the podcasting revolution

Investments

Cheshire-based mobile app SurveyMe gets £2m

The Week in Tech

A £12m series B, a £57.5m fund for Northern SMEs, a hoverbike and more in The Week in Tech

Press Releases

Software testing leader TestPlant appoints Dr. John Bates as CEO
CreditLadder appoints Proptech Expert Sheraz Dar as new CEO
Hermit: A Startup With New Ideas About Office Space

UK FinTech ‘attracts $532m in VC investment’ in Q3 2016

uk
twitterlinkedinFacebookgoogle_plustwitterlinkedinFacebookgoogle_plus

The UK came third in terms of total global VC investment in FinTech up to Q3 2016.

According to research published by Innovate Finance, some $532m was invested in UK FinTech, whilst firms in China attracted $7.1bn in investment and US financial technology firms raised a total of $5.3bn.

Challenger banks, the research found, proved the most popular when it came to securing funding in the UK.

Investment in UK FinTech ‘declined by more than 85%’ in 2016

Starling Bank, SETL, Tandem Bank, Sonovate and Ezbob were the top five FinTech deals this year, each surpassing the $25m deal size mark.

Lawrence Wintermeyer, CEO of Innovate Finance, commented on the findings:

“While the UK still attracted a high number of deals for FinTech there’s been a significant drop in investment year on year to Q3 2016, possibly due to the referendum result on Brexit and the future uncertainty of the relationship between European markets and the financial services sector.”

He continued: “While Brexit uncertainty may continue to have an impact on investor behaviour, remaining attractive to international talent is just as important to maintaining the UK’s current position as the world’s premier FinTech hub.”

A closer look

Despite large funding rounds such as Starling’s $101m raise in Q1, the research says that many FinTech firms lost out to funding during Q2, as a result of the uncertainty created in the run up to the EU referendum.

The UK’s YOY performance in terms of VC investment in FinTech during Q1 remained steady, but according to the report, it slowed down “dramatically” during Q2 – during which period investment was 33% lower than that of the same quarter last year.

Investment, the report adds, recovered “modestly” in Q3 2016, showing a 7% improvement when compared to the same time period in 2015; with eight of the top 20 FinTech deals closing post-Brexit totalling $105m.

According to the research, Entrepreneur First was the most active investor in the UK’s FinTech sector, having participated in five deals during YTD Q3, closely followed by Balderton Capital, which took part in four investment rounds.

Techstars, Passion Capital and Index Ventures followed with three investments each.

Enter your e-mail address to receive updates straight to your inbox

* indicates required
Send me news on...
twitterlinkedinFacebookgoogle_plustwitterlinkedinFacebookgoogle_plus

Editor's picks

podcasting revolution

Here’s how your tech firm can exploit the podcasting revolution
posted 1 hour ago

Lee Evans - SurveyMe

Cheshire-based mobile app SurveyMe gets £2m
posted 2 hours ago

TWIT - Emily 23.02.17

A £12m series B, a £57.5m fund for Northern SMEs, a hoverbike and more in The Week in Tech
posted 5 hours ago

Team_Monzo

Challenger bank Monzo announces £19.5m investment
posted 24 hours ago

hostmaker

Hostmaker raises £5m Series A from French VC firm Ventech
posted on February 23, 2017

caspar

EXCLUSIVE: AR startup Zappar lands $3.75m Series A
posted on February 23, 2017