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The global race to win the crown of fintech capital continues apace
The battle is on to create a global fintech center. Top contenders: The U.S. and U.K. Startups around the world (especially Israel) may be idea-machines but they need large markets to scale. In Asia, Hong Kong and Singapore are vying for the startup crown, lagging well behind mainland China.
Enter Funding Circle, which Daily Fintech argues could be giving London an edge in the global competition:
Funding Circle looks like it is joining the really big Lending Marketplaces such as Prosper and Lending Club. As this marketplace is in hyper growth phase with maybe 5-10% penetration of a massive market, this is a huge opportunity for Funding Circle. They have one big advantage – Funding Circle focus has always been on small business lending rather than consumer and as our research showed in November 2014, that is were the action is.
So it looks like Funding Circle could be one of those big winners that London needs in order to earn its coveted Fintech Capital of the World status. Lots of exciting new ventures is not enough. London needs a couple that scale to be global winners (like Hanson Trust). To do that, they need to win big in America.
The ultimate crown goes to the host of the largest and most numerous IPOs. Where will Funding Circle list when the time comes?
Photo: Christian Bucad