By Daniel Lanyon on Wednesday 11 August 2021
Across M&A, venture capital and private equity in the UK fintechs attracted $24.5bn investment in the same period.
Global fintech investment reached a record $98bn in the first half of 2021, up from $87.1bn in the same period in 2020, according to data compiled by KPMG.
The UK saw a huge slice of cash invested into fintech with $24.5bn of fintech investment (including M&A, PE and VC) in the first half of 2021, meaning nearly one in every four dollars invested went to UK firms.
The investment total was boosted by the $14.8bn Refinitiv deal as well as a surge in VC deals. The UK’s total was second only to the US ($42.1bn).
Karim Haji, EMA and UK Head of Financial Services, KPMG, says UK fintechs attracted significantly more funding than their counterparts in the rest of EMEA combined.
“COVID-19 has spurred a race to digital in UK financial services and many of the major banks have dipped into their investment pots for digitalisation – a major reason we are seeing so much corporate investment. This timing, together with the UK’s reputation as a historic financial services sector and ongoing work to nurture fintechs, from testing through to listing, makes the UK a magnet for investment.”
“The picture across EMEA is also incredibly positive with $39 billion invested in the first six months, that’s already $14 billion more than the whole of 2020. It’s also promising to see a wider mix of countries attracting big investments with $100 million+ VC funding rounds in the Netherlands, France, Austria, the Czech Republic and Saudi Arabia.”