UK financial technology firms attracted a record £1.34 billion in venture capital funding in 2017, according to new data from London & Partners.

London’s FinTech firms dominated the investment, accounting for more than 90 per cent of all money raised by UK FinTech firms over the course of the year. Firms such as TransferWise (£211 million), Funding Circle (£81.9 million) and Monzo (£71 million) all completed major funding rounds in 2017.

London’s artificial intelligence companies also saw increased investment in 2017, with substantial deals for firms such as Babylon Health (£47.5 million), Callsign (£26.9 million) and Starship Technologies (£13.9 million) taking investment in London AI firms over the £200 million mark – an increase of more than 50 per cent on 2016.

Total tech investment in the UK also reached an all-time high in 2017, with UK companies attracting £2.99 billion – almost double the £1.63 billion invested in 2016. Some of the biggest deals last year included a £391 million Series B investment into Improbable, Deliveroo raising £364 million and Truphone landing £255 million.

Investment in London’s technology firms (£2.4 billion) was worth more than the next nine European cities combined, with Paris (£564.9 million) and Berlin (£456 million) completing the top three.

The Mayor of London Sadiq Khan, said: “Today’s record investment figures are further proof that London is the undisputed tech capital of Europe and I am committed to ensuring we take over from Silicon Valley as the world’s leading tech hub.

“Technology entrepreneurs and businesses are attracted to our great city for its diverse talent pool and unique business ecosystem and I am determined that London remains open to investment and the best tech talent from all over the world.

Eileen Burbidge, a partner at Passion Capital and the UK government’s ‘special envoy’ for FinTech, added: “The UK remains one of the world’s leading hubs for technology investors and it is no surprise to see that UK tech companies attracted double the amount of venture capital financing than any other European country last year.

“It’s a testament to our exceptional entrepreneurs that the UK tech sector continues to produce companies that are leading in the development of cutting edge technologies such as artificial intelligence and FinTech,” she continued. “This environment and ecosystem of innovation presents tremendous opportunities for investors and will help to attract global investment into the UK’s digital economy for many years to come.”

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