Fintech Businesses Struggling to Raise Capital in the UK

According to research from Tech Nation - investing in financial technology companies has soared over the past few years. In fact investment in Fintech totaled £4.5 billion between 2015 and 2018, helping to cement Britain's position as a world leader of the sector. Now this puts the UK in a strong position as being seen as a leader of the market and could boost the economy.

With the City of London and other financial centers, such as Leeds and Edinburgh, on their collective doorstep, British Fintech businesses are in close proximity to both customers and a deep well of industry expertise which could give reason to why Investors have been pumping so much money into the sector.

However, Since U.K. voters opted narrowly to leave the European Union, an ever-deepening sense of political crisis has engulfed the country with the resignation of Theresa May (Ex Prime Minister). The economy has held up remarkably well over the past few years but cracks could be beginning to form. For example, founder of the rapidly fast developing currency trading platform WeSwap, has seen in recent days a bigger challenge to raise Funding from Fintech Investors.

Sticking with WeSwap, who initially raised £8 million in a 2017 Series B round and planned an IPO on the London?s Alternative Investment Market last year. Had released they now have been sensing investor doubts in the future of the Fintech market.

Research does show economic uncertainties will pass as BREXIT and a new PM is in place, until then raising capital is likely to be more difficult than previous years which hopefully won?t effect the continuous growth of developing Fintech businesses in the UK.

Could other Fintech Businesses be feeling the pinch too? If so what will they do to keep afloat?