A FINE YEAR FOR FINTECH: GLOBAL TRENDS FROM A UK PERSPECTIVE September 20192 A fine year for FinTech: global trends from a UK perspective London & Partners is the Mayor of Londons official promotional agency. We exist to support the Mayors priorities by promoting London internationally as a leading world city in which to invest, work, study and visit. Our work helps achieve “good growth” for London and Londoners, as outlined in the Mayors economic development strategy. We do this by focusing on: Building L ondon s international reputation. A ttracting international audiences and convincing them to choose London. Guiding international audiences to make the most of what London has to offer. Helping to retain and grow Londons businesses. We tell Londons story brilliantly to an international audience and we do this in partnership with organisations and people who have a stake in Londons international promotion. Innovate Finance is the independent membership association that represents the UKs global FinTech community. Our mission is to accelerate the countrys leading position in the financial services sector by directly supporting the next generation of technology-led financial services innovators. More than 250 global members have joined the Innovate Finance ecosystem to date, ranging from seed stage startups to global financial institutions and professional services firms. All benefit from Innovate Finances leading position as the single point of access to promote enabling policy and regulation, talent development, business opportunity and growth, and investment capital. By bringing together the most forward-thinking participants in financial services, Innovate Finance is helping create a global financial services sector that is more sustainable, more inclusive and better for everyone3 A fine year for FinTech: global trends from a UK perspective The UKs FinTech scene The UK holds a long-standing position as a major leading financial centre. Over the last decade, innovation has transformed global financial services, with the emergence and rapid growth of financial technology. A host of companies have emerged, transforming the UK from a leading financial services centre, to a nationwide hub leading in global FinTech innovation. The UK FinTech scene has been internationally recognised as a world-leading environment where FinTechs can thrive and scale with technological innovation. Home to an incredible pool of world-class talent, 44,000 4 people work specifically in FinTech roles in London more than in Silicon Valley or New York. The UK capital provides a gateway to one of the most promising FinTech consumer markets in the world, offering excellent access to customers. 1 EY Census 2017 2 UK FinTech State of Nation, Department for International Trade, April 2019 3 Global Startup Ecosystem Report 2019, Startup Genome 4 Fintech in the UK, City of London Corporation 2018 Generating revenue of 6.6bn 1 per year, the UKs 1,600 2 FinTech firms are amongst the most innovative in the world. London is at the very heart of this convergence and transformation a global hub for FinTech and financial services. The capital is the leading global financial centre and is Europes most valuable tech startup ecosystem valued at $47bn 3 . With average early-stage startup funding of more than double the global average, there is no sign of a slowdown in innovation4 A fine year for FinTech: global trends from a UK perspective Executive summary This report explores the FinTech VC investment landscape, comparing countries and cities in terms of deal value, deal count and sources of investment. The top countries for FinTech VC investment as of August 2019* are the US, UK and Germany, with China falling to fourth place from the top spot in 2018. The US demonstrates the most mature market with $9.37bn invested across 477 deals. The UK takes second spot globally and leads in Europe, with $2.29bn across 142 deals. Londons FinTech sector has consistently attracted more VC investment deals than any other city in the world. The UK capital also comes second globally in terms of FinTech deal value after San Francisco. On a global comparison, London attracts a more international investor mix than North American cities with nearly 39% of investors coming from outside Europe. Only 11% of investors in San Francisco come from outside of North America, and 15% in New York. *Data period 1 January to 16 August 2019 The report focuses on 2019 and includes: A country comparison of global FinTech investment. Top five countries by deal value and deal count. A city comparison of global FinTech investment. European comparison of FinTech investment. The top 10 European VC investments in FinTech. Investor HQ analysis