Fintech: investors new favourite

Financial technology has now become the most popular sector among high-net-worth investors, according to an analysis by the direct private investment platform Capitama.

Nearly 70 per cent of high-net-worth and professional investors said they were interested in putting money into fintech opportunities, while 67 per cent said they were keen to see software and technology deals.

Investment in fintech has seen a significant rise in the UK, with news last year that money pouring into the sector from venture capitalists hit an all-time high at $1.8bn (£1.3bn), a rise of over 150 per cent on the year before.

Read more: Fintech mortgage broker Trussle secures £13.6m in Goldman Sachs funding

Simon Ramery, co-founder and CEO at Capitama, said: Fintech is a sector that has seen huge growth in the past three years and evidence suggests its just the start. Our data shows that investors see real value in the companies operating in this space, and that they see a strong future for the UK fintech scene despite Brexit.”

Read more: Fintech firm Izettle aims to raise £170m in Stockholm float

The analysis also showed that philanthropic and social impact opportunities among investors stands at £300m per year.

Ramery said: “Were also really excited about the commitment of investors to look at philanthropic and social impact investing. £300m is a considerable total of investable capital and we hope to be able to help put this to good use.”

Brett de Bank, managing director and co-founder at Capitama, added “that private investment is a thriving and growing trend”.

Of the nine different investment types available on Capitama, growth funding proved to be the most popular, with 83 per cent of Capitama-registered investors interested in this area, followed by early-stage investments (72 per cent), buy-outs (63 per cent), and real estate (47 per cent).

Original Article

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