UK-based FinTech firms received 80% less VC funding than their German counterparts throughout Q2 2016.
According to CB Insights and KMPG’s The Pulse of FinTech Q2 2016 report, venture capital-backed FinTech firms in Germany saw more than an 80% increase in funding than those in the UK – with notable deals going to startups including N26 and Finanzcheck.
Given global market uncertainties associated with political events such as the UK’s Brexit vote and the upcoming US presidential election, the report notes that it was not surprising that venture capital investors refrained from making significant investments in the FinTech space.
Patrick Imbach, head of KPMG Tech Growth, KPMG in the UK, commented on the findings: “Without any doubt, there are uncertainties around Brexit, but with uncertainty comes opportunity. Free from EU rules, it is in the UK’s power to establish its own regulatory framework designed to support and encourage the growth of FinTech companies and further cement London’s role as a global FinTech hub.”...