British fintech rebounds post-Brexit
Since 2011, private equity investment has fortified its position as a catalysing force for private business growth. From seed and pre-seed businesses to leap companies pursuing an eventual public listing, British entrepreneurship has been supported by a community of investors seeking to drive the private sector forward. Between 2011 and 2015, the total volume of seed stage and venture stage equity investment grew from £488 million to £1.6 billion.
Over the past five years, Britain has become a leading figure of the global fintech industry and private investment has played a vital role. This week, it was revealed that investment into British financial technology businesses performed strongly in the fourth quarter of 2016. Figures from CB Insights showed that investment into fintech companies increased by 122% between October and December in 2016, while the number of deals rose by 33%. Further statistics from Business Insider also showed that the UK attracted the highest number of deals globally besides the US in 2016, at 173. This constitutes a 5.5% year-over-year increase, up from 164 deals in 2015.
Our recent research found that the UK’s community of private equity investors is heavily weighted towards those people who have held shares for less than five years. The Asset Match Shareholder Sentiment Index revealed that of the 6.71 million UK investors currently holding shares in private companies, over half have held them for less than five years. These findings correlate directly with the rise of equity investment options over the past five years through alternative finance platforms that have opened investors to business investment opportunities, including fintech. For instance, equity-based crowdfunding in the UK is the second fastest growing alternative finance sector, expanding by 295% from £84 million raised in 2014 to an impressive £332 million in 2015.
However, in the current investment landscape, the lack of liquidity is one of the main challenges faced by equity investors seeking to diversify their portfolio or monetise their investments. Asset Match’s platform was launched to solve this issue and unlock shareholder equity. Our trading facility is the industry’s first online platform that allows investors and shareholders to buy and sell shares in unquoted companies in a dynamic, transparent and regulated environment.