UK launches £1bn fund to support local fintech
[ad_1]
Several companies, including Barclays, Mastercard and London Stock Exchange Group, announced today, August 16, about the launch of the FinTech Growth Fund investment fund, which will invest in British fintech projects.
It is planned to initially invest £1 billion ($1.3 billion) through the fund. According to Gautam Pillai, a fintech equity analyst at investment bank Peel Hunt who is advising the project, the amount is “just the beginning.” The fund is going to invest in fintech startups in the early stages, while they have not yet become public companies. Four to eight investments per year are planned, each ranging from £10m ($13m) to £100m ($130m).
According to experts, this is a rare example of an investment fund with such a specific specialization. Earlier, representatives of the fintech industry criticized the British authorities for an environment that is not very convenient for such companies, including, among other things, related to the UK’s exit from the EU.
According to KPMG estimates, investment in this area in the UK fell by 57% in the first half of the year. True, this reflects the general difficulties of the sector in conditions of high market volatility, inflation, macroeconomic difficulties, etc., rather than the specifics of doing business in the UK. The UK accounts for 16 of the top 200 fintech companies in the world, according to Statista, with more in the US alone. British fintech services include Checkout.com, Revolut and Freetrade.
[ad_2]
Source link
