London has overtaken New York and San Francisco to become a global powerhouse in fast growing areas such as payment processing and online banking.

According to the latest figures from Dealroom, London has attracted £7.8 billion in FinTech venture capital funding this year, beating New York’s £6.4 billion and San Francisco’s £6.1 billion.

The Dealroom report shows how many British FinTechs are continuing to grow whereas in the US there have been widespread tech redundancies.

Dealroom have also revealed that “London is Europe’s most successful place for employees of unicorn firms.” A unicorn is a company valued at over $1 billion. According to the findings, 27 London-founded unicorns this year produced 168 new ventures, “with the lion’s share of the activity coming from FinTech.”

During 2022, fast-growing UK tech companies have also continued to raise at near-record levels (£24 billion), more than France (£11.8 billion) and Germany (£9.1 billion) combined. This takes the total raised in the UK over the past five years to nearly $100 billion (£97 billion).

Dealroom’s report underlines the success of the UK tech economy and its progress as a source of global innovation, even calling the British capital “a European Silicon Valley.”

Janine Hirt, CEO of Innovate Finance, said: 

“It is fantastic to see that UK FinTechs are continuing to secure outstanding levels of investment – this is a testament to the strength of our ecosystem, including our innovative entrepreneurs and founders, strong and diverse talent pool, and a supportive government and regulatory framework. 

“It is critical that we now keep up this momentum. The UK is currently receiving more investment in FinTech than all of Europe… We must continue to work together – industry, government and regulators – to build on this leadership and ensure the UK remains the best place in the world to start, build and scale a FinTech business. This will positively impact not only the financial services sector but the entire population of the UK as a whole who will benefit from new, innovative, and more effective products that drive greater financial wellness.”

Laura Citron, CEO of London & Partners added:

“Unlike many hubs across the world, London provides FinTechs with access to one of the world’s leading financial centres, alongside Europe’s largest tech ecosystem. This combination is a recipe for innovation, while also providing companies with access to policy makers, regulators and the financial institutions – all in one city.

“Despite a challenging VC funding landscape globally… we are seeing a strong appetite from international companies looking to setup and grow their FinTech businesses in London.”

Russ Shaw, co-founder of London Tech Week said:

“It’s an encouraging sign that investors are saying to their businesses ‘keep going’ whereas businesses in Silicon Valley have been in significant retrenchment mode.

“Our macroeconomic climate here has been very challenging for a while – you’ve had the pandemic and the challenges associated with that – but investors will be thinking, ‘if you’ve made it through those big impacts then you’re pretty resilient, so you can withstand further headwinds.’”

Consistent growth across UK tech saw the industry reach the $1 trillion in value milestone earlier this year, making it only the third country ever to hit this valuation after the US and China.

1 COMMENT

  1. 2016: Britain will be benkrupt and unattractrive place for investment.
    2022: London overtakes New York and San Francisco to become global FinTech powerhouse.
    SMELL THE COFFEE BREXIT IS WORKING!

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