Brexit Uncertainty Sees UK FinTech Funding Fall by 33%
A new report by Innovate Finance and Pitchbook has found that investment in FinTech in the U.K. fell in 2016 to 33.7 percent while China and the U.S. dominated the sector. According to the report, The 2016 VC FinTech Investment Landscape [PDF], which was published this month, the U.K. received VC funding amounting to $783 million in 2016 compared to the $1.2 billion in 2015. This was largely attributed to the uncertainty circulating Brexit as well as geo political and macro-economic factors. While total deals post-Brexit amounted to $368 million in 2016, year on year investment decreased....
Related News
Following the Brexit vote in June, there has been a significant drop in venture capital funding in London, prompting some to think that the city could lose its position as the FinTech capital. According to a report from the Financial Times, new figures released show that funding in the FinTech sector dropped in 2016. Innovate Finance, the U.K.’s financial technology trade body, found that since Brexit venture capital funding dropped as FinTech companies in the U.K. deal with the Brexit effects. Innovate Finance reported that, globally, venture capital funding for FinTech companies grew....
Brexit has created uncertainty. How does the UK maintain its lead? 2017 is the year when UK FinTech must go mainstream. Uncertainty is slowing down funding, which in turn is leading to a slowdown in innovation. The threat is that London could be overtaken by non-UK FinTech hubs. “Tech funding is officially slowing down,” confirms Katia Lang, co-founder at Disrupts Media and FintNews.com. “In the Q3, European start-ups suffered a sharp decline in funding, raising €2.1 bln from venture capital funds with 464 deals, a drop of a third from the Q2, and 39 percent lower compared with the same....
The battle for the world’s fintech hub after the Brexit vote is still clouded by uncertainty, but time is running out. On September 16, the UK Prime Minister Theresa May told the European Council President Donald Tusk that Britain would likely begin the process of withdrawal from the EU in January or February 2017. This comment may heat up the battle of which city is likely to become the world’s fintech hub. Many banking and/or financial related startups have been considering the move to mainland Europe, but the uncertainty surrounding as to when and how the roll-out of Brexit will take....
Blockchain technology continues to command a fair share of venture funding for fintech, one of the hottest venture capital (VC) targets worldwide. While the number of deals and the total value of fintech VC investment ebbed in Q3 2016, activity is expected to rebound in the fourth quarter and in 2017, according to a global analysis of venture fintech funding by KPMG and CB Insights. The Q3 slowdown in VC fintech funding was due to the lack of $1 billion-plus mega-deals. The total dollars invested this quarter was also less than half of that in Q3 2015. But despite the recent quarterly....
The recent Supreme Court ruling requires the British government to get parliamentary approval before initiating the Brexit process, fintech industry faces uncertainty. Brexit is a crucial event for the fintech and blockchain sector. The post-Brexit world will decide the fate of the European Fintech ecosystem. But the separation of England from the European Union may not be happening anytime soon. According to reports, the English Supreme Court has ruled that the Prime Minister of Great Britain, Theresa May has to seek the approval of the parliament before setting the wheels of Brexit in....