These 5 charts show why London's fintech scene could soon eclipse Silicon Valley's

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These 5 charts show why London's fintech scene could soon eclipse Silicon Valley's

london skyline

Dan Kitwood/Getty Images

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  • London is leading European fintech by the total amount of funding and the number of unicorns.
  • The UK now lags behind just the US and China for the number of current and "realized" unicorns.
  • London now has more fintech unicorns than San Francisco.

Fintech is booming and London's calling.

The UK now has no equal in Europe and is on track to match the powerhouses of China and the Bay Area for the number of unicorns, or billion-dollar private companies in its market.

It's been a meteoric rise for London, which has seen $5 billion in VC investment in the first half of 2019, the most on record. In 2018, VC investment in the UK was more than that of Germany, France, and Sweden combined, according to Tech Nation figures. London now has more fintech unicorns (18) than San Francisco (15).

A mix of progressive regulation, access to talent, and increased levels of funding have helped deflect the looming specter of Brexit. One of London's most well-known VCs, Eileen Burbidge, says that a third of Europe's unicorns got their start in London and 30% of what she calls "future unicorns" are based in the UK.

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"There's never been a better time to be working in the UK digital tech sector," said Burbidge, chair of Tech Nation and partner at Passion Capital. "We are really punching above our weight. I'm confident that we will be producing many more world-class fintech companies, uniting our country's expertise in financial services and deep tech, along with world-leading digital tech companies across all categories."

Below is a series of notable investments made in 2019 and a series of charts demonstrating London's prominence in tech circles:

H1 investments

Tech Nation/dealroom.co

Notable investments in the first half of 2019.

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The UK ranks third in the world for unicorns

The UK ranks third in the world for unicorns

It's not just in fintech. And unicorns are emerging across the country, not just in London.

"These figures show the extent to which the UK digital tech sector is rivalling those in the US and China, after an incredibly strong year of investment backing for fast-growing UK companies," said Gerard Grech CEO at Tech Nation. "The UK's digital tech sector continues to go from strength to strength with unicorns now being produced right across the country."

Funds in the UK are investing in top companies

Funds in the UK are investing in top companies

Part of the rise of fintech in the UK has been access to capital. London's startup "ecosystem" is supporting seed to various rounds of Series A, B, and C funding to notable companies.

"The UK has long held an established position at the forefront of this, leading in areas like fintech, AI and healthtech," said Suranga Chandratillake, general partner at Balderton Capital. "This ecosystem is now creating companies who are solving solve some of the biggest social problems in the world, from improving the delivery of healthcare to creating fairer financial services."

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The UK receives more funding than Germany, France, Israel, and Sweden.

The UK receives more funding than Germany, France, Israel, and Sweden.

This chart demonstrates increase in VC funding not just in the UK but across the rest of Europe and Israel as well. It's a broader trend of greater amounts of capital in the market but the bulk of this funding is coming into the UK.

The UK has been creating more unicorns than its peers and at a faster pace for the past five years.

The UK has been creating more unicorns than its peers and at a faster pace for the past five years.

In the past year, since last May the UK has seen 13 new unicorns enter the market including Monzo, Greensill, Graphcore, OVO Energy, and Acuris.

"UK tech is producing global businesses, and Graphcore is proud to be contributing to its success," said Nigel Toon, co-founder and CEO of Graphcore. "In Bristol, London and now Cambridge, we are hiring a world-class team in science, engineering and software that is building the future of machine intelligence."

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London is the second largest city in the world for fintech unicorns

London is the second largest city in the world for fintech unicorns

London's infrastructure is cited as a key reason for its continued prominence in fintech. Unlike the Bay Area which is built up of multiple municipalities and city districts, London is in close proximity to a number of major universities, research centers, European and UK cities, government, regulators, talent, and capital.

As a result ,the UK capital is increasingly seen as a possible new region for not just fintech, but other tech startups by investors and entrepreneurs.

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