Investment into UK FinTech companies declined by more than 85% in 2016 compared to 2015.
According to KPMG’s ‘Pulse of FinTech Report Q4’16’, there was a “distinct decline” between 2015 and 2016 both in terms of M&A and venture investment activity.
FinTech firms in the UK raised $4.6bn in 2015, with the figure falling to $654m in 2016.
However, the report notes that in keeping with European trends, the volumes of deals remained healthy with 124 transactions completed during the period.
Additionally, the research showed that VCs continue to show a strong interest in the sector, with deal volume increasing to 96 from 93 in 2015, despite the value falling by 36% in the period.
Looking at Europe
Europe, the report adds, also saw total FinTech investment drop 80% from $10.9bn in 2015 to $2.2bn last year. The transaction volume, however, remained relatively resilient with 318 deals completing during the year....