First half investment in UK fintechs increases
(7 September 2017 – United Kingdom) Fintech trade body, Innovate Finance has found that more than a billion dollars was invested in British fintech companies in the first half of this year, over a third more than the same period in 2016.
The research, conducted in partnership with consulting firm EY, interviewed 245 fintech startups on behalf of the UK Treasury.
According to the research, foreign investors also contributed to over half of the total, suggesting that despite concerns post-Brexit, international investors still see the region as an attractive place for their money.
Despite Brexit, the UK's fintech firms remain bullish on their prospects, with half expecting revenues to double over the next 12 months and a third even anticipating an IPO within five years, according to the survey. Additionally, the research found that despite Brexit, these startups are still confident on getting funding, with half of all respondents expecting their next round to raise more than £2 million, and 35 percent anticipating more than £5 million.
Europe and North America are seen as the two most important regions for future expansion.
Challenges addressed by the survey including recruitment and customer adoption rates. Respondents said coding and software development would be the most difficult skills to find when recruiting – which may be exasperated by Brexit, followed by product and sales skills. Around 50 percent of respondents said customer acquisition would be of the biggest challenges facing them in 2017.
Stephen Barclay, economic secretary to the Treasury, says: "Fintech is saving millions of people time and money by transforming how we use financial services. The fintech census shows a thriving sector and we are committed to ensuring that the UK remains the best place in the world to start and grow a fintech business."