Menu visibility control

Video

Events

Startup Surgery

Most Recent

Investments

London startup Cool Cousin raises $2m Seed

Investments

AI-powered authentication platform Callsign raises $35m to boost global expansion

Investments

InsurTech startup Brolly gets £1m Seed co-led by Valar Ventures and Pi Labs

Press Releases

GreenKey Technologies and Red Box Recorders partner to launch integrated trading voice collaboration and compliance recording solution
Leading light in British HealthTech, Network Locum, rebrands to Lantum
SteelEye announces regulatory tech specialist Matt Smith as CEO

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.

UK ‘ranks third for global FinTech VC funding as firms raise $564m in H1 2017’

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 email address to receive updates straight to your inbox

* indicates required
Send me news on...
twitterlinkedinFacebookgoogle_plustwitterlinkedinFacebookgoogle_plus

Editor's picks

cool cousin app

London startup Cool Cousin raises $2m Seed
posted 1 hour ago

callsign

AI-powered authentication platform Callsign raises $35m to boost global expansion
posted 2 hours ago

man smiling at colleague

InsurTech startup Brolly gets £1m Seed co-led by Valar Ventures and Pi Labs
posted 4 hours ago

liverpool the north of england

What’s stopping the North of England becoming a major tech hub?
posted 6 hours ago

Limejump

Limejump closes £3m Series A to disrupt the energy utility market
posted 20 hours ago

startup empty office

Mass redundancies at Jinn as startup struggles to succeed in on-demand delivery market
posted 21 hours ago