UK fintech shrugs off Brexit to set a new funding record

Deal sizes are increasing in the UK's disruptive finance space.

Deal sizes are increasing in the UK's disruptive finance space. 

The first three quarters of 2017 saw £2.1bn of investment in UK fintech companies, almost double the total invested in the whole of 2016, according to consultancy Fintech Global.

This makes 2017 already a record year for the sector in terms of funding with more than £2bn invested across 182 deals. The average deal size into UK fintechs is increasing rapidly.

The third quarter of 2017 saw nearly £1.2bn invested in the sector, the largest total investment in a single quarter to date. The quarter also received record investment in large deals with £532m invested across five deals. The largest of these went to P2P lender Prodigy Finance, which raised £155m of debt financing in August.

The size of investments to fintech companies based in the UK has increased rapidly since 2014

Fintech investments valued below £75m had a CAGR of 10.7 per cent between 2014 and 2016, according to Fintech Global. The total amount invested in deals valued above £75m has also increased this year, with £877.1m capital committed so far across eight deals.

Despite the large increase in investment only 80.2 per cent of the number of deals closed in 2016 were completed in the first three quarters of this year.