Why London is holding on to its fintech crown

Rajesh Agrawal is the deputy Mayor of London for business

London was confirmed last month as the world’s top hub for fintech venture capital funding.

So far in 2022, it has raised $6.3bn. That’s well ahead of New York, at $4.5bn, and Silicon Valley, at $5.5bn. It comes on the back of record-breaking venture capital investment into London last year of $25.5bn as well.

With my own business background in fintech, this sector and its success — which is incredibly important to London’s economy — is very close to my heart.

London is the undisputed tech capital of Europe and is home to more start-ups and scale-ups than anywhere else. There is nowhere else on earth that you can meet venture capitalists, regulators, clients and partners, all within a short ride on the underground, an ecosystem that is now even better served with the newly opened Elizabeth line.

The success of London’s fintech sector is a testament to traditional industries such as fashion, financial services, healthcare and education innovating with technology to create bold new ideas. The capital’s position as a global financial centre, combined with its status as a global technology hub, has cemented the UK as a leader in fintech.

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London is a testbed for innovation and a place where new ideas thrive. The city is home to 3,018 fintech headquarters, more than New York’s 2,531 and San Francisco’s 1,515.

Thanks to unicorns such as Wise, Starling Bank, Onfido, Monzo, Checkout.com and Revolut, the UK represents more than 10% of the global market share in fintech.

The sector is thriving and has proved incredibly resilient over the past two years. In fact, I would go further and say it has performed remarkably. We want to ensure this continues to be the case, as it is crucial to our goal of building a better London for everyone – a city that is a fairer, greener, safer and more prosperous place for all.

Research from recruitment firm Hays recently revealed recruitment in London’s tech sector has now risen above pre-pandemic levels, with the sector in the UK now worth $1tn.

The only other countries to hit this figure are the US and China, and tech investment and innovation is set to play a key role in driving the UK’s economic recovery forward.

The creativity and diversity of the city creates a wonderful playground for innovation to thrive. Whether you want to set up, expand or scale your business, London offers a wealth of resources.


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