The global financial technology (fintech) sector is booming and London-based companies have seen record investment during the first six months of 2021. According to a research report published by Dealroom.co and London & Partners, the global fintech sector attracted nearly $54 billion during H1 of 2021.
The research highlighted significant growth in London’s fintech sector. London-based financial technology startups attracted $5.3 billion during the first half of 2021, which is the highest level on record. In the first six months of 2020, London’s fintech companies raised $2.1 billion.
VC Funding into London-based fintech companies accounted for nearly 35% of the total VC investment in Europe’s fintech sector.
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Commenting on the latest report, Janet Coyle, Managing Director of Business Growth at London & Partners, said: “London has the ‘finance’ of New York, the ‘tech’ of Silicon Valley and the policymakers of Washington, all within a 15-minute journey by tube. These factors make London one of the world’s most connected global tech hubs in the world, with all the necessary ingredients for startups to succeed, from investors to world-class universities and talent to policymakers – this is our secret sauce.”
London-based fintech startups including SaltPay and Checkout.com raised significant amounts in the latest funding rounds. In April 2021, Goldman Sachs, one of the largest investment banks in the US, invested £50 million in Starling Bank, a London-based financial services provider.
Overall, London-based companies attracted nearly $11 billion in VC funding across different sectors. “London is an outward-looking, diverse global city that continues to build strong relationships with tech hubs across Europe and around the world. It is fundamental for global tech hubs to work together, to share expertise and knowledge, and to drive forward progress and innovation. Working in collaboration with cities in Europe allows Europe to continue to compete on the global stage, with the likes of the US and China. Europe had a record year for VC investment last year, and global investors are increasingly interested in what is going on across the pond from the traditional tech hub in Silicon Valley,” Coyle added.