British fintech firms are set to raise a record amount this year as companies shrug off Brexit jitters.
Research by London & Partners, the Mayor of London’s official promotional agency, shows London’s fintech firms continue to attract overseas investment despite Brexit uncertainty.
The research shows over £1bn has been pumped into UK fintech businesses since the referendum vote last year, with £852m invested since January alone.
This figure is almost double the amount recorded for the same period in 2016 and is 17% higher than the previous record of £588m set two years ago.
The UK is now the third largest fintech player in the world behind the US, which raised £3.6m between Jan and Sep and China, which raised £1bn.
This growth has been spearheaded by London, which alone attracted 90% of all venture capital investments into UK fintech this year, totalling a massive £769.41m.
Deputy mayor for business, Rajesh Agrawal, said: “London remains a world leader in fintech and the companies on this trade delegation are at the forefront of developing cutting edge financial technologies.
“The fact that we have seen over £1bn worth of venture capital investment into London fintech companies since the EU referendum vote offers further proof that global investors still believe London will remain a leading fintech hub for many years to come.”
Over the last five years, London has topped the tables of European companies when it comes to the total venture capital raised by fintech firms.
Fintech firms in the capital brought in £2.43bn between September 2012 and September 2017 – more than Paris, Frankfurt, Berlin and Amsterdam combined.
Stockholm was the next successful fintech hub, having attracted £470m over the past five years – followed by Berlin at £309m, and Paris at £233m.