Since the beginning of this year, London-based technology companies have raised $ 4 billion from venture capitalists.
Fintech startups continue to be popular among investors in the venture capital market. According to a recent study, this year, 39% of venture capital investment in London comes from fintech companies. Thus, the region shows resilience even during the Kovid-19 crisis.
In the five months of this year, London-based technology firms raised $ 4 billion from venture capitalists – more than Paris, Stockholm, Berlin and Tel Aviv. Of this amount, Fintech Startups had a 39% stake.
A report prepared exclusively for the Digital Economy Board said that technology in the UK experienced the worst crisis in February. But in general, the period from January to May 2020 was quite fruitful. However, it is feared that several deals were done before the virus was revealed. According to experts, capital inflows in the second half of the year are unlikely to be as strong as 2019.
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About two-thirds of startups expect revenue to fall by more than a quarter. And two fifteenths believe that their funds will be sufficient for less than 12 months. About half the startups suspended hiring new employees, although the number of vacancies was steadily increasing at the beginning of the year.
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In 2019, the UK took second place in the world (and first in Europe) in terms of investment in fintech – $ 4.9 billion (an increase of 38% compared to 2018), and the number of transactions was 359 (a decrease of 9%). At the same time, the amount of investment in fintech in Asia decreased by 73% – from $ 28.8 billion to $ 7.8 billion due to reduced funding for Chinese startups.
Read: How coronovirus will affect Ukrainian fintech: Interview with Rostislav Dyuk, UAFIC
According to the content Finextra