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The Chancellor might actually be right – FinTech drives 2014 deal surge

28 August 2014|by Jennifer Glover

For a comprehensive overview of UK fintech investment data, take a look at our guide.

It seems that the post-credit crunch reputation of the Banking and Financial Services sector is no longer holding back growing companies in the space. Quite the contrary – they are experiencing a massive surge in popularity among investors in 2014. Deals in the sector made up more than 10% of all UK equity investments in the first half of 2014, a marked increase from around 5% in the preceding three years.

The majority of these investments were into ‘FinTech’ companies, i.e. those with a software or internet element combined with a financial services slant. This gives weight to the Chancellor’s recent claim in a speech at the launch of new regulatory body 'Innovate Finance' that FinTech is the space to watch.

Transferwise is a great example of the UK FinTech scene and was even name-checked in the Chancellor’s speech. It has grown remarkably quickly for a 4-year old startup. Founded in 2010 with Seedcamp backing, it has gone on to raise over $32m in successive institutional rounds with participation from well-known venture capital firms IA Ventures, Index Ventures and The Accelerator Group.

There are a number of less well-known (unless you are a Beauhurst subscriber) startup companies that are also looking interesting. For instance, one-year old Landbay is one of Seedrs' latest investments, a peer-to-peer lending platform that allows its users to lend money to borrowers against secured properties. It is definitely one to watch.

Perhaps the Chancellor really has backed the right horse.

 

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