London is one of our favorite cities — you simply can’t beat a freshly poured Samuel Smith’s at the Chandos upstairs opera room, among many other delights. And it seems the fintech world is coming to the same conclusions.
A report that was just released finds that London is now home to the second-most fintech “unicorns” (yes, that word again) in the world, behind only San Francisco. Of the world’s 29 fintech unicorns — which the report defines as private companies valued at more than $1 billion — nine are in San Francisco, while seven are located in London.
Indeed, the report further notes that in 2018, job creation within the fintech space increased by 61% — making it the fastest growing sector in the London economy. The city also tops all others in Europe in terms of venture capital funding for fintechs — with 39% of all European VC money going to London-based firms.
Of course, much of this sustained success depends on the outcome of the seemingly never-ending Brexit negotiations. A so-called “soft exit” would likely not impact London’s fintech sector much. On the other hand, the “hard exit” option could have greater ramifications.