It appears neither Brexit nor the Covid-19 pandemic can slow down the London fintech sector.
According to a new report from City AM, fintech companies in the capital have drawn in at least $3.6 billion in venture capital investment this year, across 169 separate deals.
London is currently the world’s second-best place for investment worldwide, but still significantly behind San Francisco (which hit $5.1 billion in the same period).
The report also states that the landscape would look different if it weren’t for US investors. More than half of investment (60 percent) came through funding rounds with at least one US investor, while an average deal with a US investor sat at $44 million, compared to $12 million without one.
Revolut was this year’s biggest winner, attracting investments from US firms Technology Crossover Ventures and Ribbit Capital.
Fintech is one of the capital’s best-performing sectors, accounting for almost half (44 percent) of all VC investment in London tech companies this year.
For Laura Citron, CEO of London & Partners, London is “a natural home” for fintech, as it combines the power of global financial markets with a deep tech talent pool.
And while London’s fintech companies are looking to expand overseas, US and Canadian firms are looking to open new offices in London as well. Fintechs Plaid and Clearbanc both recently unveiled new offices in the UK.