London has beaten European capitals for the top spot in a new ranking table of the most attractive cities for fintech occupiers in Europe, according to reports.
The capital, which has brought in over €18bn (£15.4bn) of fintech venture capital funding over the last five years, has kept its place at the top of the rankings compiled by property agent Savills’, according to Evening Standard, which first reported the news.
The amount of funding drawn in by London over the past five years outstripped its European rivals with Berlin attracting €4.8bn, Stockholm €4.3bn and Paris €2.5bn, despite the higher costs of renting office space in London compared with Berlin and Paris.
The UK capital’s establishment as a centre for banking was pointed to as one of the reasons for its top spot in the table which ranked cities based on scores for their business environment and affordability.
London universities King’s College, UCL and Imperial College London were also highlighted for supporting the development of start-ups through accelerator schemes.
“Companies have previously clustered in the traditional finance areas of The City and Canary Wharf,” said director in Savills London tenant team, Paul Bennett.
“However, as the sector has evolved they are now searching across central London to secure offices that will help them attract the best talent for this growing industry,” he explained.
London’s crowning as a fintech hub in Europe comes a week after the city’s financial watchdog announced a list of changes to its listing rules in an bid to bolster incentives for innovative founder-led companies to list on UK markets sooner.
Chief among the new changes, the Financial Conduct Authority (FCA) confirmed the introduction of a “targeted form” of dual class share structures within the UK’s premium listing segment, as well as reducing free float.
Dual class share structures work by offering two separate sets of shares, one to the general public which typically have limited to no voting rights, and another set which is retained by founders and executives that have greater weighting in voting processes.
The greater power dual class share structures give to founders of companies allows them to exert more control over big company decisions, and prevent a hostile takeover in the initial years after IPO when their company is in a nascent stage of growth.