UK fintech firms Funding Circle, Monzo, Revolut and Transferwise boost VC funding to record levels

By Daniel Lanyon on Monday 8 January 2018

Digital BankingSavings and Investment

Tech investment from venture capitalists favoured disruptive financial firms last year.

Tech investment from venture capitalists favoured disruptive financial firms last year.

Investment in UK technology firms reached an all time high in 2017 led by a swathe of financing for fintech firms, according to data compiled by Pitchbook.

Representing a near doubling of funding in early stage businesses, the data show tech investment reached £3bn in the UK last year.

The research was comissioned by London & Partners, an arm of the London Mayoral office aiming to promote foreign direct investment into London.

Fintech firms scooped nearly half of the total funding from venture capitalist funds run by Baille Gifford and Old Mutual Global Investors among others.

It was the leading sector for investment in 2017, with UK financial technology firms attracting a record £1.34 billion in VC funding. London's fintech firms led the way, accounting for over 90 per cent of all money raised by UK fintech firms last year.

2017 saw major funding rounds for financial technology companies such as TransferWise (£211m), Funding Circle (£81.9m) and Monzo (£71m). 

Eileen Burbidge, Partner at Passion Capital says the UK remains one of the world's leading hubs for technology investors.

“It is no surprise to see that UK tech companies attracted double the amount of venture capital financing than any other European country last year," she said.

"It's a testament to our exceptional entrepreneurs that the UK tech sector continues to produce companies that are leading in the development of cutting edge technologies such as artificial intelligence and fintech. This environment and ecosystem of innovation presents tremendous opportunities for investors and will help to attract global investment into the UK's digital economy for many years to come,” she added.

London's Artificial Intelligence (AI) companies also saw elevated levels of funding in 2017. Big deals for companies such as Babylon Health (£47.56m), Callsign (£26.92m) and Starship Technologies (£13.95m) saw investment in London AI companies reach over £200m - increasing over fifty percent on 2016 funding levels.

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