US investors eager for returns head to London and UK fintech

US investors eager for returns head to London and UK fintech

With US venture capital firms showing a strong appetite for investing in London and UK companies, promotional agency London & Partners has highlighted PitchBook data showing that much of this attention is being paid to fintech.

A number of large deals this year has shown London’s booming fintech sector to be particularly attractive for US investors, with London online money transfer platform WorldRemit closing a $175 million (£135.52 million) Series D investment that involved Accel Partners.

Online payment service GoCardless and online international money exchange platform CurrencyCloud closed $75 million (£58.08 million) and $40 million (£30.98 million) Series E rounds, respectively, with GV, the venture capital arm of Google parent company Alphabet, leading both investment rounds.

Separate research by Innovate Finance and London & Partners recently revealed that London has received more fintech venture capital funding than New York and any other European tech hub, second only to Silicon Valley.

London & Partners added that the US also remains a key market for UK firms looking to expand internationally, with a number of British fintech unicorns announcing plans to launch their services in the US market this year, including Revolut, Monzo and TransferWise.

“US investors appear to be flocking to the UK looking for good returns, with a recent report from British Business Bank showing that UK venture capital funds generated better financial returns than their US counterparts,” London & Partners explained in its write-up of the data.

“The Analysis of UK Venture Capital Financial Returns report found UK venture capital funds generated a higher distribution-to-paid-in-capital ratio (DPI) in the period of 2002 to 2006 than those based in the US.”

With UK fintech increasing in attractiveness to US investors and the market across the Atlantic becoming a viable option for expansion, it’s important for London-based firms and others across the country to shout about their achievements and be recognised for the innovation and successes.

The UK FinTech Awards is seeking entries from fintech firms across the length and breadth of the UK, to demonstrate not only London’s innovation in financial services, but everywhere else’s, too.

Visit our categories page to find out how you can enter and take the opportunity to celebrate the huge attraction and potential of the UK’s fintech scene

You can also read the full rundown of London & Partners and its assessment of the data from financial data and software company PitchBook, which highlights some of the long-term investments into London that can be expected, including:

  • Apple is set to open a new London campus in 2021 at Battersea Power Station for 1,400 staff 
  • Google will open a new HQ in Kings Cross to house up to 4,500 staff 
  • LinkedIn moved into its new UK HQ in Farringdon in January 2019
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