UK fintech funding races ahead of Europe
According to new figures, the UK’s fintech sector was beaten by only the US on total investment last year despite a sharp fall in funding on 2023 levels.
As global fintech investment fell 20 per cent globally to $43.5bn (£35.2bn), the UK attracted $3.6bn (£2.9bn) of total funding, more than the next five European countries combined, according to data from Innovate Finance.
Despite the sharp fall in new capital coming into the sector, industry figures are hoping for a resurgence in 2025.
“When we’ve been speaking with investors, they’re positive about 2025,” Janine Hirt, CEO of Innovate Finance, told City PM.
“There was a bit of dry powder there waiting, and now going forward, there’s a lot more clarity as we’re in a post-Budget, post Mansion House environment. There is certainty around the government, both here and in the US.”
Though the UK maintained second place globally behind the US, funding fell faster than the global average. Funding dropped close to that of India, which recorded $2.2bn (£1.8bn) in fintech funding for the year.
Throughout 2024, major UK deals included $621m funding round for Monzo and $267m for Zepz.
Meanwhile, female-led fintechs saw a sharp 78 per cent drop in investment, raising only $120m (£97m), or 3.3 per cent of all UK funding.
“It is a clear indication that we need to be doing more, because that is a hugely disappointing number, and we have to take action to try and increase that,” said Hirt.
Across the rest of Europe, France raised $1.1bn (£891m), returning into the global top 10, followed by Germany with $900m (£729m).