Fintech Investments

UK FinTechs Garnered Record VC, PE Investments In 2018

The U.K. FinTech market had a strong showing in 2018, with venture capital and private equity investments hitting $3.3 billion.

According to Innovate Finance, that marked an 18 percent year-over-year gain. In a press release, the industry trade group said that private equity investments in U.K. FinTech startups increased 57 percent to $1.6 billion in 2018. Meanwhile, venture capital investments were $1.7 billion. Innovate Finance said the money is coming as the U.K. FinTechs enter a new stage of growth ahead of rivals across Europe.

“It is very encouraging to see that investment continues to grow in the U.K. FinTech sector, reaffirming its position as a leading global financial and technology center,” said Charlotte Crosswell, chief executive of Innovate Finance, in a press release. “The U.K. has a unique position across financial services, technological innovation, regulators and government which all play a crucial role in this impressive growth journey. However, we should not be complacent, as new challenges lie ahead; we must focus on growing our talent and capital pipeline across the U.K. to ensure sustainable and inclusive growth in the future.”

According to Innovate Finance, the U.K.’s FinTech sector maintained its position as among the leaders, coming in third place in terms of venture capital invested. China and the U.S. were ahead of the U.K. Within Europe, the U.K. is in the lead, with Germany and Switerzland in second and third place, in terms of investments. The group pointed to Revolut’s $250 million capital raise last year. The U.K. FinTech’s round was among the top ten largest deals by venture capitalists in 2018.  Innovate Finance found that challenger banks garnered 27 percent of the total venture capital investment dollars, with personal finance and wealth management in second place. Alternative lending and financing and blockchain and digital currencies rounded out the top four investment areas.  Of the investments flowing to the FinTech startups, 50 percent came from overseas, with North American investors leading the charge.

On a global basis, Innovate Finance found VC investments reached $36.6 billion, up 148 percent from 2017 and 329 percent higher over the past five years. Ant Financial of China with its $14 billion capital raise accounted for 38 percent of all the VC funding going to FinTechs.

 

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