London remains most popular investment target for European venture capitalists

 
Jessica Clark
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Digital bank Monzo is one of the fintech unicorns based in London

London secured its reputation as a global fintech hub as it attracted almost double the amount of venture capital funding compared to its closest European rival last year.


The capital received 39 per cent of European venture capital funding last year, almost double that of runner-up Berlin, which took in 21 per cent in 2018, despite the ongoing uncertainties caused by Brexit.

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Paris, Stockholm and Barcelona made up the rest of the top five cities for VC fintech investment last year, with 18 per cent, five per cent and four per cent respectively, according to data from fintech recruiter Robert Walters and market intelligence firm Vacancy Soft.

London has the second largest concentration of fintech start-ups in the world after San Francisco and the number of fintech jobs advertised in the city jumped by 61 per cent last year compared to 2017.


Robert Walters chief executive Chris Hickey said: “This boost to the fintech market resulted in a 61 per cent increase in job creation in London and an 18 per cent increase in jobs outside London in 2018 - making it the fastest growing sector in the UK.

“Whilst Brexit has no doubt been a concern and slowed down hiring levels somewhat within financial services, the fact that the UK has one of the best IT and banking talent pools in the world continues to be a big draw for investors.

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In January it was revealed that tech firms in London raised £1.8bn in venture capital and public listings last year, followed by Berlin, where fintechs secured a total of £936.5m.

Figures released last year also showed that the UK has created 60 unicorn startups, which are firms worth more than $1bn, since 1990.