As Brexit negotiations grind on, London’s fintech sector remains a hotbed of investment activity, capturing the lion’s share of a £2.99 billion venture capital splurge on UK tech firms.
The figures, produced by Pitchbook for promotional agency London & Partners, show VC investment into the UK’s tech sector reaching an all-time high in 2017 at almost double the £1.63 billion invested in 2016.
Brexit may be a dark cloud on horizon, but UK firms attracted almost four times more funding in 2017 than Germany (£694m) and more than France, Ireland and Sweden combined. London tech companies also raised significantly more venture capital investment than any other European city, including Amsterdam, Berlin and Paris.
The Mayor of London, Sadiq Khan, says: “Today’s record investment figures are further proof that London is the undisputed tech capital of Europe and I am committed to ensuring we take over from Silicon Valley as the world’s leading tech hub.
Fintech was the leading sector for investment in 2017, with UK financial technology firms attracting a record £1.34 billion in VC funding. London’s startup economy led the way, accounting for over 90% of all money raised by UK fintech firms in a year which saw major funding rounds for disrupters such as TransferWise (£211m), Funding Circle (£81.9m) and Monzo (£71m).
Eileen Burbidge, partner at Passion Capital says: “It’s a testament to our exceptional entrepreneurs that the UK tech sector continues to produce companies that are leading in the development of cutting edge technologies such as artificial intelligence and fintech. This environment and ecosystem of innovation presents tremendous opportunities for investors and will help to attract global investment into the UK’s digital economy for many years to come.”