Fintech Startups in the UK are On Track for a Record-Breaking Year of Investment in 2017

New figures reveal that fintech startups in the United Kingdom are set to attract a record amount of investment this year, opposing concerns that Brexit could affect the star sector.

According to new data from London and Partners and Pitchbook, over $1bn (£760m) was already invested into technology firms hoping to disrupt finance in 2017 by venture capital investors, more than double the amount this time in 2016.

Investment is set to break 2015 when $1.16bn was funded in UK fintech, cementing the position of London as a global hub and the fintech capital of Europe. It attained a five-quarter high during the third quarter, with 37 deals that are worth $358m separate figures published by CB Insights show.

The data also foretells that investment across Europe could break the $2bn barrier for the first time this year, having already achieved a record of $1.8bn across 216 deals in the first three quarters of 2017.

The already bumper year has been mainly driven by the United Kingdom, accounting for about half of investment and eight of the ten biggest deals the of third quarter. They include $66m for Revolut, the digital challenger bank, $50m for Receipt Bank, an accountancy software firm, and $40m for Prodigy Finance, a  lending platform.

Along with an investment in China that is expected to hit new highs, it places fintech investment globally on course for a record year. So far in 2017, firms around the globe have collected $12.2bn across 818 deals. However, analysts believe that the cash going into fintech in the United States will be off record highs for its second year in a row. The country is still expected to take the lion’s share of cash, followed by China and the United Kingdom.

Meanwhile, a separate report that is soon to be published from Investec has remarked an increasing interest from new investors. “Reaffirming the global appeal of London’s fintech sector, in 2017 we have seen a large number of international investors invest in London fintechs who have not invested in London previously,” stated Kevin Chong, the co-head of emerging companies.

Rajesh Agrawal, the deputy mayor for business, said that the figures were “yet more proof that global investors believe London will remain a leading fintech hub for many years to come.”

“Clearly, Brexit poses major challenges – but London’s position as a global financial centre and world-class technology hub is built on strong foundations which cannot be replicated anywhere else: access to more software developers than Stockholm, Berlin and Dublin combined, Europe’s largest fintech accelerator Level 39, and the continent’s only truly global financial market.”

Agrawal continued “This highlights the need for a Brexit which enables London to maintain its place at the heart of the single market, as Europe’s financial capital.”