London startups received £1 billion in funding this year

London’s startups received more funding this year than in any other European city, according to figures from Statista.

The research, which used figures from EY’s Startup Barometer Germany report, showed that startups in the city raised €1.3 billion (£1.1 billion) in the first six months of this year, up from €1 billion in the first half of 2015.

Decline

Figures showed that London startups raised €300 million more than start-ups in Stockholm, which was listed as the second biggest city for startup investment.

Startup investment also increased in the UK as a whole in the first six months of this year, with startups raising €2.2 billion (£1.9 billion) in funding, up from €1.5 billion during the same period last year.

Whilst funding was found to have risen across most European cities, figures showed a decline in Berlin, with funding dropping from €1.5 billion in the first six months of 2015 to €520 million in the same period this year.

Cautious

The figures come after recent research from KPMG and CB Insights showed a decline in fintech funding in the UK, with funding dropping by 12 per cent to £78.4 million in the second quarter of 2016.

Commenting on the figures, KPMG Global Co-Head of Fintech, Warren Mead, said that it was the result of a “more cautious environment” and that the UK “will not give up its role as Europe’s fintech leader easily” regardless of the Brexit result.

He added: “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.”