The UK’s financial technology (fintech) sector is booming, new figures suggest
Analysis carried out by London & Partners shows that the technology sector has seen nearly £7bn of investment in venture capital (VC) since the creation of Tech City UK in 2010 – with fintech accounting for a healthy chunk of that sum.
The study shows VC funding of tech start-ups increased by 70% in 2015 rising from £1.4bn to £2.5bn and marking a record year. A large percentage of the investment was in London, where tech companies raised £1.5bn in 2015, accounting for 63% of the UK’s VC total.
The hike in investment, particularly in the capital, is testament to the UK’s diverse talent pool and well-established financial services sector, according to London mayor Boris Johnson
“With a flourishing tech scene and one of the world’s leading financial centres, it is no surprise to see that London’s tech companies are attracting record levels of investment,” he said. “Our world-class talent pool and our culture of innovation and entrepreneurial spirit are helping the sector to grow from strength to strength. We can expect the capital’s tech sector to continue to generate jobs and growth for the city’s economy for many years to come.”
Of the £1.5bn raised by London-based start-ups in 2015, fintech companies accounted for a quarter of the figure, which shows just how strong the sector has become, says Eileen Burbidge, technology ambassador for the mayor of London. She believes that investors have recognised the value in keeping on the right side of the sector, whilst also being attracted to its diversity.
However, if you are yet to invest in the sector but are looking for an opportunity to do so, please head over to our Open Investments page. There you will find details on the FinTech 2016 SEIS Fund, which aims to provide investors with a diversified portfolio of innovative companies with disruptive fintech offerings.