£1 Billion For London Startups In First Half Of 2016

The latest data from Statista has shown that startups in London have received more funding so far in 2016, than any other city in Europe.

Statista’s research was compiled with help from the figures contained in EY’s Startup Barometer Germany Report, which detailed how, in the first six months of 2016, startups in the capital had raised €1.3 billion (£1.1 billion). This figure beats the same time period of 2015 when the amount raised in funding stood at €1 billion.

The stats also show that Stockholm’s startups come second in the amount of investment raised. They received $300 million less than startup companies in London.

It wasn’t just good news for the capital’s startups, but the UK as a whole, as the data shows that the UK’s total startup investment in the first six months of 2016 increased to $2.2 billion (£1.9 billion), up from $1.5 billion in the first six months of 2015.

Caution ahead

Despite funding generally increasing across the majority of cities in Europe, Berlin’s funding dropped from €1.5 billion in the first six months of 2015, down to €520 million in 2016.

The research by Statista adds to that released by CB Insights and KPMG, which details how the UK’s fintech funding has decreased by 12% in the second quarter of 2016, to £78.4 million.

Figures such as these show a certain amount of caution in Europe, most likely occurring as a result of the recent Brexit result.  Warren Mead, KPMG’s Global Co-Head of Fintech agrees with this sentiment, stating the figures were the result of: “a more cautious environment”. However, even in the wake of the Brexit result, he stated the UK “will not give up its role as Europe’s fintech leader easily”.

He stated that: “traditional financial institutions and banks of all sizes are realising that the opportunities associated with fintech aren’t about who has the deepest pockets – and so they’re intensifying their innovation efforts. Therefore, despite the global decline in quarter two, overall fintech funding remains on track to surpass 2015 levels.”