UK tech companies surpassed the venture capital funding record set in 2014, achieving this feat in 2015.
In 2015, London's fintech sector experienced a significant surge in venture capital (VC) funding, marking a pivotal shift that propelled the city to the forefront of global fintech innovation. According to reports, VC investment in London-based startups grew dramatically, with an impressive 800% increase from 2015 to 2020 [4].
This surge in funding set the stage for London's rise as a leading fintech hub. The UK's fintech sector as a whole saw continuous growth in VC funding throughout the 2010s, peaking at high valuation levels before a recent decline starting around 2023 [3]. This historical context confirms that 2015 was part of the upward trajectory in fintech investment.
April 2015 was a particularly strong month, with London-based peer-to-peer lending company Funding Circle securing the largest single deal of the year with a $150m funding round. This significant investment was indicative of the heightened investor interest in fintech innovation in London.
Gordon Innes, CEO of London & Partners, highlighted the city's attractiveness to investors, stating that businesses in London received over 60% of all the funding into the UK's tech sector in 2015. Index Ventures was the most active investor in London tech companies in 2015, participating in 12 deals worth up to $345.55.
Other notable investments included Deliveroo, Secret Escapes, and Onefinestay, all of which were backed by Index Ventures. The UK's ecommerce sector also saw success, with companies like FarFetch, MADE.com, and Secret Escapes raising significant amounts.
Eileen Burbidge, partner at Passion Capital and Mayor of London tech ambassador, attributed the increased investment to the diversity and strengths in certain sectors such as FinTech in London. The top five investment houses in London tech companies for 2015, in addition to Index Ventures, included Accel Partners, Balderton Capital, 83North, and Hoxton Ventures.
London-based tech companies raised a record $2.28 billion during the period, a 69% increase on the $1.3 billion raised in 2014. In October 2015, Octopus Ventures announced a $140 million London-based fund. The UK's technology sector attracted more than $3.6 billion in VC funding in 2015.
Since 2010, UK technology companies have collectively raised $9.7 billion, with London-based firms accounting for more than half of the total ($5.2 billion). During 2015, the investment secured by London-based tech firms accounted for 63% of total VC investment raised by UK tech firms.
Some of the largest FinTech deals this year included Zopa ($106 million), TransferWise ($58 million), and WorldRemit ($100 million). London's fintech sector secured record funding during 2015, accounting for almost a quarter of all investment raised by London-based tech companies.
Moreover, London's fintech sector was also enticing US investors, with almost one third (29%) of all deals in London-based tech firms originating from US venture capital investors. As a result, 2015 can be seen as a significant inflection point for increased VC funding in London's fintech sector, marking the beginning of a period of rapid investment growth and sector expansion.
The surge of venture capital (VC) funding in London's fintech sector in 2015 was instrumental in setting the city apart as a leading fintech hub, attributable to the technology sector's continuous growth throughout the 2010s. Notable investments in London-based fintech companies like Zopa, TransferWise, and WorldRemit in 2015 indicated the heightened interest of investors in technology innovation in London.
