London has overtaken New York to become the world’s number one city for investments in fintech firms, new figures have revealed.
In the first eight months of the year alone, London has attracted 114 investments with a record-breaking value of more than $2bn (£1.6bn), according to industry body Innovate Finance and the mayor’s promotional agency London & Partners.
The rush of deals puts the capital in the top spot for total number of deals secured, with New York and San Francisco in second and third place respectively.
San Francisco still rules the roost in terms of total value, beating London with over $3bn of investments so far in 2019. New York took third place at $1.9bn.
“London has always been ahead of the curve and pivotal in embracing new technology and opportunities while pushing the boundaries of an existing ecosystem, to present an even better solution,” said Laura Citron, chief executive of London & Partners.
“This is why we’ve seen these outstanding global trends in fintech. The financial technology sector is diverse, creative, cutting-edge and innovative – these very qualities are shared by London and Londoners.”
Overall, the US remains the largest market globally, with $9.4bn raised this year. However, the UK continues to punch above its weight, pulling in $2.3bn.
London-based companies accounted for half of the 10 largest European investments recorded so far in 2019.
The capital’s success has largely been driven by the emergence of tech unicorns – the label given to companies with a valuation of more than $1bn.
Earlier this year London overtook San Francisco to become the city with the most tech unicorns worldwide, thanks to a string of new entrants such as Greensill and Checkout.com.
The latest figures also revealed that London attracts a wider international variety of investors than other European hubs, with roughly 40 per cent of investors coming from outside Europe.
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Innovate Finance chief executive Charlotte Crosswell said: “The UK is the clear global leader in fintech, spearheaded by London’s success and its long-standing position as a major leading financial centre.
“It’s no surprise that London and the whole of the UK fintech sector is experiencing record growth – we are home to world-class talent and our historical pedigree enables access to key global markets. With record investment under our belts, this is the time to boost the sector further and secure future growth.”
Main image credit: Getty