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UK FinTech firms ‘raised $328m in Q1 2017’

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Venture capital funding into UK FinTech firms rose during Q1 2017 with firms in the space raising $328m, according to a report.

Produced by CB Insights, ‘The Global FinTech Report: Q1’17‘ found that 22 deals were made during the first quarter of this year – eight more than those closed in Q4 2016.

The funding raised by FinTech firms during Q1 represented a 171% increase when compared to the amount ($121m) raised during the last quarter of 2016.

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Some $200m raised during the time period came from the large rounds closed by Atom Bank and Funding Circle.

Perhaps unsurprisingly, Q3 2016 was the worst period for FinTech funding, with only 12 firms raising a total $78m in the UK, in the run up to and the aftermath of the Brexit referendum.

German FinTech

In comparison, German FinTech companies raised a total of $150m from venture capital investors across 17 deals during the first quarter of 2017.

Investment into German FinTech companies dipped significantly during Q3 2016 ($105m, 11 deals) when compared to the amount raised and deals closed during Q2 ($175m, 15 deals).

According to the report, Q4 last year saw the smallest amount of VC investment into German FinTech, with just seven firms raising a total of $34m. In stark contrast, UK FinTech companies raised $121m during the same time period.

Index Ventures, SpeedInvest were found to be the most active VCs in European FinTech companies, with financial technology companies in the continent raising a $667m across 73 deals.

Holtzbrinck Ventures, NFT Ventures, Global Founders Capital, Earlybird Venture Capital, Dieter von Holtzbrinck Ventures, German Startups Group, Seedcamp, Ribbit Capital, Octopus Ventures and SEED Capital were also among the top 10 most active VCs in Europe.

FinTech in the US

Some $1.1bn was raised by US FinTech firms during Q1 2017.

The amount, however, represents a considerable decrease from the $5.5bn raised across 439 deals last year.

The report suggests that if the pace of investment seen during Q1 continues, funding to VC-backed financial technology companies would decrease by 20% from last year’s total.

In fact, the report goes on to suggest that US FinTech deal activity is on track to fall below 2013 ($2.3bn) levels at the current run rate.

Sofi’s $500m Series F was the biggest round seen in the US last quarter, followed by Namely’s $50m Series D.

New Enterprise Associates was the most active FinTech VC in the US.

FinTech in Asia

The report says Asian FinTech deals are set to drop throughout the rest of this year.

According to the data, the current rate shows that Asia could see 8% fewer VC FinTech deals in 2017 than it did last year.

The findings come after a report by tech investment bank GP Bullhound found that China had cemented its position as the rising leader in the world of FinTEch last year.

500 Startups was found to be the most active investor into Asian FinTech.

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