Rajesh Agrawal is London’s Deputy Mayor for Business
London was confirmed last month as the world’s leading hub for fintech venture capital funding.
Through 2022, it has raised $6.3 billion. That’s well ahead of New York at $4.5 billion and Silicon Valley at $5.5 billion. It also comes on top of record venture capital investment in London last year of $25.5 billion.
With my own business background in fintech, this sector and its success, which is incredibly important to the London economy, is very close to my heart.
London is the undisputed tech capital of Europe and is home to more start-ups and large companies than anywhere else. There is no other place in the world where you can meet venture capitalists, regulators, customers and partners all within a short subway ride, 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 real estate technology.
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London is a testing ground 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 like Wise, Starling Bank, Onfido, Monzo, Checkout.com and Revolut, the UK accounts for more than 10% of the global fintech market share.
The sector is thriving and has proven incredibly resilient over the past two years. In fact, I would go further and say that it has performed remarkably well. We want to ensure this remains the case, as it is crucial to our aim to build a better London for everyone – a city that is fairer, greener, safer and more prosperous for everyone.
Research by recruitment firm Hays recently revealed that recruitment in London’s tech sector has now risen above pre-pandemic levels, with the sector in the UK now worth a trillion dollars.
The only countries to reach this figure are the US and China, and investment and technological innovation will play a key role in driving the UK’s economic recovery.
The city’s creativity and diversity create a wonderful playground for innovation to thrive. Whether you’re looking to set up, expand or scale your business, London offers a wealth of resources.