FinTech Shows Resilience During Crisis
Figures released by Tech Nation and Dealroom for the Digital Economy Council show that investors continue to back the UK’s FinTech industry.
From January to the end of May, UK tech companies raised $5.3bn, compared to a total raised in the rest of Europe of $4.1bn. Of that, London-based companies raised $4bn, more than Paris, Stockholm, Berlin and Tel Aviv combined.
FinTech continues to dominate fundraising in the London, accounting for 39% of 2020 fundraisings.
On measures including investment raised by companies and capital raised by investors the UK outperforms all of its European neighbours.
Digital Secretary Oliver Dowden said, "The UK's tech sector has shown resilience in these challenging times and the levels of investment in the year to date have consolidated our Europe-leading position."
Gerard Grech, chief executive of Tech Nation said, "Many businesses are adapting and innovating to support the fight against coronavirus, demonstrating the resilience and resourcefulness of the UK tech sector. Although we are seeing many tech companies closing key rounds of funding, the picture is being monitored closely at Tech Nation, especially across different parts of the country, where access to finance may not be as strong. These findings today confirm that the UK is well-positioned to face the challenges that lie ahead and leave Covid-19 in a position of strength."
Although the report shows UK tech to be in a strong position overall, it also highlights recent data gathered from 200+ companies for the venture capital community, which shows:
- Two-thirds expected revenues to drop by more than a quarter
- A third of companies have slowed hiring, while almost half have frozen hiring
- Two-fifths of companies believe they have less than 12 months of funds