The UK’s financial technology (fintech) companies are gobbling up more venture capital money than other tech firms, according to data out yesterday.
Corporate finance firm Ascendant found that 22 fintech companies signed venture capital deals worth £300 million between January and June, with fast-growing companies like Transferwise and Currency Cloud bagging themselves £15 million and £6 million respectively.
In total, 92 UK tech companies received £520 million from the venture capital community over the same time period.
Other than fintech, the only other major grouping amongst "internet service" investments was in fashion/retail companies, where there were 16 companies that received £85 million.
"While “FashTech” is a popular area for investment, relatively few of the businesses have achieved the scale that requires the type of “super investment” (ie >£10 million) deals that are more common in FinTech," said Ascendant.
Geographically, London companies received the vast majority of the venture capital investments, taking 88 percent of the £520 million.
Indeed, 45 London tech companies received venture capital money compared to just eight in Edinburgh and six in Cambridge. All other cities or towns had less than five deals.
Last year, £259 million was invested by venture capitalists into 91 internet service businesses but Ascendant predicts that significantly more will be invested in 2014.
"Our best guess for 2014 is still that around 300 companies will receive £1.5 billion," said Ascendant.
Ascendant produces quarterly reviews of VC investment trends for the technology sector in the UK and Ireland.