Investment in UK Fintech sees big rise in 2017

The United Kingdom attracted $564 million of venture capital investments in the first half of 2017, an increase of more than a third (37 per cent) compared to the same period last year.

That's according to figures from a new report by Pitchbook by Innovate Finance, the not-for-profit membership association for global FinTech.

The country ranked third globally in total investment, falling behind just the United States and China. The country was also second when it comes to deal volume, with a total of 102 deals.

However, these figures are still lower compared to the pre-Brexit era of H1 2015.

The top five UK deals were Atom Bank, Funding Circle, Zopa, Monzo and Currency Cloud, with Atom Bank and Funding Circle making it into the global top 20 deal list. 

The US attracted the largest amount of VC investments (357 deals), bringing in $3.3 billion. SoFi, the US-based personal finance firm, raised the largest round globally, at $453 million.

The most active global investors were 500 Startups, Startupbootcamp and Y Combinator with 17 investments each.

Commenting on the findings, Abdul Haseeb Basit, CFO of Innovate Finance said: “The investment data for the first half of 2017 shows that global FinTech investment is down verses the same period in 2016, however if you adjust for the exceptional mega-deals in China in H1 2016, where three companies, Alipay, Lufax.com and JD Finance, raised over $1billion each, we see that global investment has gone up 28.4 per cent. The sector continues to thrive.”

He added: “Despite the uncertainties of Brexit, the UK retains its position as a leading FinTech hub and has attracted more investment in H1 2017 than the same period last year. These investment figures are lower than H1 2015, signalling a slow return to pre-Brexit funding levels. The UK government needs to continue its support for the sector, by ensuring the country remains attractive to talent and investment, while also maintaining an open trading relationship with Europe and the rest of the world.”

Image source: Shutterstock/MaximP