This year, promising fintech companies in London and the rest of the UK received a significant amount of investment from the USA. According to new data, the amount of funding provided by the US reached record levels.
US venture capital firms provide finance to startup companies that show huge potential to grow and be vastly profitable.
During the first 11 months of 2019, American investors have been a part of $4.4bn (£3.4bn) worth of funding into UK businesses, of which three-quarters was represented by London.
Monzo, a British mobile-only bank, gained one of the largest investments of the year, receiving $144m in a funding round led by Silicon Valley investment mainstay Y Combinator.
Onetrust, a UK data privacy firm, secured $200m in a round led by New York investor, Insight Partners. Cybersecurity company, Synk, also received $70m from Accel Partners.
The latest research has supported the idea that US investors have not shied away from the UK as an investment centre – despite the uncertainty surrounding Brexit – as London continues to create companies with values of more than $1bn.
The data showed that businesses located in Britain´s capital city received more funding than any other European business hub.
Britain also has a strong relationship with the global centre for technology and innovation, Silicon Valley. Over the last five years, investors from the San Francisco Bay Area have injected more money into the UK than the combined funding given to France and Germany.
Innovate Finance and London & Partners conducted research earlier this year that revealed London to be the world´s number one city for fintech investment, overtaking New York.
Some of America´s most prosperous tech firms have recently released further plans to make some serious investments in London. Apple is due to open its new London site at Battersea Power Station in 2021, while Google and Facebook are set to open new offices in Kings Cross. Microsoft, Amazon and LinkedIn have also expanded into the capital city.
“The UK remains a top place for global investors because it is now producing high volumes of scale-up companies,” said Sherry Coutu, angel investor and co-founder of Silicon Valley Comes to the UK.
“While Brexit has created some uncertainty, investors from the US and further afield continue to look to London as Europe’s leading tech hub because it is home to world-class talent and an abundance of innovative companies – especially in areas such as fintech, cybersecurity and artificial intelligence.”