Brexit slams UK fintech funding
November 17, 2016 in Finance
Thirty UK-based fintech start-ups have had their funding cancelled or delayed by investors since the Brexit vote in June, giving them serious cashflow headaches, according to Innovate Finance, a members association representing the British fintech community.
Problems ramped up as soon as the Brexit vote was announced. “We set up a post-Brexit toolkit, which is almost a first-aid kit, trying to align them with other venture capital and private equity investors,” Lawrence Wintermeyer, head of Innovate Finance, told the FT. “It was an obvious response for us to what seemed like a crisis.”
Innovate Finance isn’t a Brexit fan and has called on the government to ensure that the UK remains an attractive location for global fintech talent and that the financial services sector is able to access the EU single market by maintaining passporting rights.