UK fintech funding dips but stays ahead of rivals in 2022
In 2022 rapidly rising interest rates aimed at countering surging inflation shifted investor behaviour in higher-risk assets such as venture capital.
The UK’s fintech startups raised $12.5bn in 2022, a figure 8 per cent lower than the previous year.
While the dip in funding represents a cooling of activity by venture capital and other investors into the UK fintech market, London and an increasingly vibrant regional fintech scene in the UK stayed ahead of rivals.
“UK fintechs are holding the fort in securing great levels of investment in challenging economic times, a testament to the resilience and strength of our sector,” Janine Hirt told City A.M.
“Our latest report shows that the UK is still receiving more investment in fintech than all of the next 10 European countries combined, and remains second in the world only to the US.”
Perhaps unsurprisingly London fintech firms grabbed most of the UK’s total haul ($10.2bn), down about 5 per cent from 2021.
Globally fintech funding fell by nearly a third compared with 2021’s record-setting year, suggesting greater resilience in the UK market.
“London’s fintech industry has consistently proven itself to be both robust and ambitious in the face of economic challenges,” said Khalid Talukder, co-founder of London fintech firm DKK Partners.