Fintech companies based in London raised more funding from venture capital investors in the first six months of 2021 than in any other year, demonstrating the British capital’s resilience as a hub for digital financial services post-Brexit.
Investors poured US$5.3 billion into London fintech startups in the first half of the year, compared to US$2.1 billion in the same period in 2020, new research from Dealroom and agency London & Partners found.
London’s boom tracked soaring fintech investment levels globally as coronavirus lockdowns drove adoption of digital financial services, including payments and trading.
Fintech companies globally raised US$54.1 billion between January and June, overtaking the total amount secured in the two previous years, the research showed.
London fintechs accounted for a large share of Europe’s growth, representing over a third of the region’s funding.
Globally, the city of London ranks second behind San Francisco and slightly ahead of New York, the research found.
“Today’s investment figures are a vote of confidence for the UK fintech sector,” Anne Boden, CEO of neobank Starling, said.
Starling was among the London fintechs to secure a major funding round this year, raising £322 million (US$444.88 million). Other large rounds included US$478 million for payments firm SaltPay and US$450 million for payments unicorn company Checkout.com.
Despite the growth, concerns remain about the impact of Brexit, particularly around access to talent and licences.