The UK’s fintech industry attracted over $16bn investment in the first half of 2018 which was in large part due to Vantiv’s acquisition of WorldPay for $12.9bn. The UK accounted for over half the total fintech investment into Europe ($26bn) and attracted more money than the US ($14bn).
Despite some concerns about Brexit, venture capital investors remained bullish on UK fintech with four of Europe’s top 10 deals happening here: a $250m raise by Revolut, a $100m raise by eToro, a $60m raise by Flender and a $54m raise by MoneyFarm.
Globally, fintech investment roared ahead at a record pace in the first half of the year, with $57.9bn invested across 875 deals, a significant increase from the $38.1bn invested in all of 2017.
Anton Ruddenklau, Global Co-Lead, KPMG Fintech, 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.”
“Large deals at all stages of investment powered fintech investment in the first half of 2018,” adds Ian Pollari, Global Co-Lead, KPMG Fintech. “But just as notable is the breadth of investment. 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.”