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Investors pour record £12bn into UK fintech

Investors continue to be ‘bullish’ on British fintech, with over $16 billion (£12 billion) flowing into the sector in the first half of 2018, according to KPMG.

Investors pour record £12bn into UK fintech

Investors continue to be bullish on British fintech, with over $16 billion (£12.2 billion) flowing into the sector in the first half of 2018, according to KPMG.

Much of that was due to a single transaction however, with £9.8 billion attributable to US payment processing giant Vantiv’s purchase of UK peer WorldPay at the end of the period.

The UK contributed more than half the European total of $26 billion (£19.8 billion), and more than a fifth of the total capital raised globally.

Despite concerns over Brexit, four of Europe’s top 10 deals took place in the UK, KPMG noted in a sector review.

These were funding rounds by Revolut, eToro, Flender, and MoneyFarm worth a respective £190.3 million, £76 million, £45 million and £54 million.

KPMG Fintech’s global co-lead, Anton Ruddenklau, said: ‘The year has got off to an exceptionally strong start for the fintech sector.

‘In addition to the bullish levels of investment the UK has attracted, our fintech sector has also benefitted from the government’s continued support with the launch of the Fintech Sector Strategy.

‘Fintech investment is always fairly volatile but the UK tends to enjoy higher highs and lower lows than most, the blockbuster acquisition of WorldPay by Vantiv certainly means H1 2018 was a real high for UK fintech investment.

‘Whilst the rest of the year will struggle to replicate the first half, I’m optimistic that we will remain in robust shape.’

Globally, $38.1 billion  invested in 2017 rose to $57.9 billion through 875 deals, with the subsectors of payments, regulatory technology, and blockchain particularly well-represented.

Ian Pollari, global co-lead, KPMG Fintech, said: ‘We’re seeing a mix of fintech sub-sectors drawing increasing interest, including data, AI and regtech — these horizontal capabilities have appeal across the full spectrum of the financial services industry.’

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