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London’s fintech sector attracts record levels of US investment in 2019

By Amanda Cooper

Report finds US venture capital firms are involved in $3.48bn in London deals alone, more than any European city

US investors are expected to rack up record levels of deals in UK companies this year, as London and its fintech unicorns remain their hub of choice, according to a report on Monday by consultants Pitchbrook and London & Partners.

Despite the uncertainty created by Brexit for parts of the financial sector, US investors have been involved in $4.4bn (£3.39bn) of deals in UK companies so far this year. London alone accounted for $3.48bn of this. So-called “unicorns” – privately held start-up companies valued at more than $1bn such as digital bank Monzo, or cybersecurity firm Snyk – have attracted well over $200m so far this year in US venture capital funds, the report showed.

The data showed US investment in London companies has more than doubled in just two years, even though the more-established financial sector has announced at least 7,000 jobs will vanish from the City and £1trn in assets will leave the UK as a result of Brexit, according to a report by consultants EY.

Monday’s report showed that, over the past five years, London has comfortably outpaced other European cities for US venture-capital funding, with around $12.7bn raised, compared with Berlin, in second place, with $6.5bn and Paris, with $3.65bn.

“The UK remains a top place for global investors because it is now producing high volumes of scale-up companies,” said Sherry Coutu, an angel investor and co-founder of the Silicon Valley Comes to the UK event, which takes place across the UK this week.

“While Brexit has created some uncertainty, investors from the US and further afield continue to look to London as Europe’s leading tech hub because it is home to world class talent and an abundance of innovative companies – especially in areas such as fintech, cybersecurity and artificial intelligence,” she said.

FURTHER READING: University's fintech start-up raises £1m funding

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