Is the UK losing out while Europe’s fintech gets a Brexit boost?

By Daniel Lanyon on Wednesday 30 August 2017

Alternative Lending

Research from CB Insights suggests markets such as France and Sweden have seen growth in their share of fintech deals.

Research from CB Insights suggests markets such as France and Sweden have seen growth in their share of fintech deals. 

In the past three or four years fintech has gone from obscurity to stardom with London and the UK more broadly recognised worldwide as a top hub for innovation and fundraising after the USA. Since 2013, however, its dominance over the market has weakened.

That is the suggestion from data provider CB Insights. It notes that while the UK takes the top spot in terms of the number of major funding deals (1,288 deals worth $9bn) since 2013, the Brexit process may be boosting other European countries - such as France and Sweden's - prospects.

The UK’s share of deals, it says, has fallen from its 2014 high and CB Insights questions whether this could be owing to uncertainty of the UK market. Several countries have shown signs of growth in 2017, while Germany’s 16 per cent in 2016 and 13 per cent this year could bode well for a strong second-half of the year, it said in a recent report.

Over a third of European fintech deals since 2013 have gone to UK-based companies. Notable recent UK deals include Neyber’s $28M Series C, Receipt Bank’s $50m Series B, and Revolut’s $66m Series B, which could also arguably demonstrate that while its share of the overall market is still strong as these deals are on the larger size as well as declines in other European countries.

The Netherlands saw 7 per cent of all European fintech deals in 2015, but has seen only 2 per cent this year and 3 per cent in 2016, for example.

It is perhaps also worth noting that other research has shown that while 2016 did see a slight dip compared to 2015, in terms of total amount invested in UK fintech, 2017 is currently set to be a record year if the total amount invested numbers up to the end of June are considered.

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