£2.3bn raised for UK FinTech in first half of 2019
The UK FinTech sector is attracting investment at a record rate, with $2.9bn (£2.3bn) raised in the first six months of 2019, suggests new research.
Investment into UK FinTech start-ups this year was off to the quickest start compared to any calendar year, with the current total invested equivalent to nearly 85 per cent of the total that was raised in 2018.
The first half of 2019 is off to the quickest start of any calendar year of investment in FinTech start-ups, up just over 45 per cent year-on-year and nearly double the inflows in the second half of 2018.
A significant majority came from later stage venture capital and private equity growth investment rounds which represented 85 per cent of total investments made this year, with angel, seed and early venture capital rounds accounting for 15 per cent of capital.
Greensill Capital and OakNorth attracted the two largest deals made this year and are amongst the largest fundraise rounds in the UK FinTech sector so far, with $880m and $440m respectively.
Challenger banks including OakNorth ($440m), Monzo ($147m) and Starling Bank ($98m) dominated the charts with the most significant investments.
The payments and foreign exchange sectors also experienced large investments with companies such as Checkout.com ($230m), WorldRemit ($175m) and GoCardless ($76m) raising further rounds to support their growth.
“Investment into the UK FinTech sector shows no sign of slowing down,” said Charlotte Crosswell, CEO of Innovate Finance, which conducted the study.
“The flow and impressive size of individual investments demonstrate an ecosystem that is showing signs of growing maturity.
“This research underlines the UK’s position as a world leader in FinTech. It is hugely encouraging to see evidence of this resilience and growth despite the uncertainty and challenging times ahead.
“Both the flow of capital and a wide talent pool are essential to maintaining the sector’s strength, and we remain committed to support efforts in these vital areas.”