The tidal wave of venture capital (VC) money that flowed into global financial technology (fintech) investments during 2016 has already shown signs of receding, according to the U.K.'s fintech chief.
"Things in venture capital have slowed into 2017. We're seeing globally more extensions of A-rounds and I think the prognosis is that it might be difficult to top the global numbers of around $16 billion that was done globally last year," Lawrence Wintermeyer, chief executive officer (CEO) of Innovate Finance, told CNBC from FundForum International in Berlin on Monday.
Wintermeyer heads up the non-profit association that represents fintech in the U.K. and has been keeping a close watch on investment appetite since the U.K. voted to leave the European Union (EU) last June.
The period immediately following the Brexit vote featured a "bumper" round of VC investments which indicated that most deals that had been planned in advance still went ahead, according to Wintermeyer.
Continuation of such momentum is critical given than once the U.K. has left the EU - with the clock already ticking down to a March 2019 deadline - the domestic fintech industry will lose access to the European Investment Fund. This EU body provides financing to small and medium sized enterprises and contributed around EUR 2.3 billion ($2.6 billion) to U.K. VC funds between 2011 and 2015.
The Innovate Finance CEO says that there has been some slowdown but not enough yet to cause panic.
"People have been sitting on the fence but broadly we have been doing ok," he observed.