Brexit Uncertainty leads to decrease in FinTech funding in the UK

Brexit Uncertainty leads to decrease in FinTech funding in the UK

A recent study by Innovate Finance and Pitchbook has found that investment in the financial technology sector in the UK fell in 2016 to 33.7 percent w

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A recent study by Innovate Finance and Pitchbook has found that investment in the financial technology sector in the UK fell in 2016 to 33.7 percent while China and the US dominated the industry.

The UK received funding amounting to $783 million in 2016 as compared to $1.2 billion in 2015, the report said as quoted by cryptocoinnews.com. This finding was explained with the uncertainty that followed Brexit as well as other geo political and macro-economic factors.

“The loss of passporting rights will hit FinTech payments firms if special provision to the single market are not negotiated upon leaving the union. Attracting further investment to the UK FinTech remains the number one priority.”, commented Lawrence Wintermeyer, CEO of Innovate Finance in an interview with cryptocoinnews.com.

China takes the lead

According to the study, there were 1,436 financial technology deals on a global scale in 2016, amounting to $17.4 billion. FinTech in China and the US are attracting $13.9 billion (for both of them) out of $17.4 in total.

Still, it should be noted that China is currently number one, while the US comes second, as stated by the media.

The biggest FinTech VC round in history amounted to $4.5 billion and was received by China back in 2016. The big investment came from Alipay`s Ant Financial.

As a whole, China managed to rank before the US for the first time. It happened after the country received the largest VC investment at $7.7 billion over 28 deals, numbers that represent an increase of 84 percent as opposed to figures in 2015 that amounted to $4.2 billion.

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