Sunday 10 July 2016 11:35 am

UK fintech startups are more attractive than ever post-Brexit, one investor claims

A major tech investor has said it's likely to become more aggressive in its UK investments following the Brexit vote, while funds based outside the UK will find investing in startups based here more attractive.

Anthemis, which has invested in fintech firms such as Azimo, eToro and Currency Cloud as well as challenger bank Atom, holds most of its funds in euro and dollar, making UK investments more lucrative with the historic drop in sterling and it"immediately benefited" on 24 June – the day after the vote – when the value of the currency plummeted.

The comments were made by John Egan, a director at the fintech investment and advisory group, at a fintech event discussing the implications of Brexit for the industry.

The bullish outlook also extended to the view that other euro and dollar denominated funds may now find UK startup investments more attractive. Sterling VC funds may find a "blip" on the other hand, said Egan, while corporate interest from banks and other established businesses, would continue at the same level it was at before the referendum.

"We're neutral to optimistic on fintech," said Egan. "The UK is still extraordinarily attractive," he told an audience of startups and investors at the Canary Wharf incubator Level 39, hosted by fintech body Innovate Finance.

Brexit uncertainty may also drive innovation, said Egan. "The financial crisis created more innovation and it might be needed to circumvent some of the issues from Brexit."

The bullish views are in stark contrast to some in the industry who fear that the uncertainty created by leaving the EU will put off investments in to UK startups.

While several well-known investors have reaffirmed their commitment to investing in the UK's ever growing tech sector, sources within the industry suggest some firms have already had funding rounds postponed or halted.