US pumps money into London fintechs

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According to CityAM, American venture capital firms are pumping record amounts of money into London’s fintech firms.

James Warrington says, “American investors have been involved in $4.4bn (£3.4bn) worth of deals into UK firms so far in 2019, with London businesses accounting for more than three-quarters of the investment, according to research from Pitchbook and London & Partners.”

Monnzo had a major cash injection in 2019, pulling in $144m in a series F round led by Silicon Valley investment mainstay Y Combinator. UK data privacy firm Onetrust raised $200 million in its Series A round, and security company Snyk raised $70 million.

Apparently, Brexit is not deterring them, because London produces a “high volume of unicorns.” Certainly London is faring far better in this respect than any other European business hub.

That’s because the ties between the UK and Silicon Valley are particularly strong. Investors in the Bay Area pumped more money into UK companies in the last five years than they did in Germany and France combined.

Sherry Coutu, angel investor and co-founder of Silicon Valley Comes to the UK, a not-for-profit programme run by London & Partners, said, “The UK remains a top place for global investors because it is now producing high volumes of scale-up companies.”

She added, “While Brexit has created some uncertainty, investors from the US and further afield continue to look to London as Europe’s leading tech hub because it is home to world class talent and an abundance of innovative companies — especially in areas such as fintech, cybersecurity and artificial intelligence.”

London recently overtook New York as the world’s number one city for investment in fintech firms, and is the global leader in terms of the number of deals completed. That’s why David Hornik, general partner at Silicon Valley-based investment firm August Capital, says, “As an investor, I always like to keep an eye on what’s happening in London as it is a truly global centre for business with a large pool of companies building breakthrough technologies.”

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