Fintechs have raised more than double so far in 2021 than they did in the whole of 2020
UK fintechs have raised $11.4bn so far this year, compared to just $4.57bn last year
Funding and fintechs go hand in hand—particularly with the rise of mega-rounds—and, according to Tech Nation, fintech funding soared last quarter.
New data from Tech Nation shows that, in the last quarter, VC investment in UK fintechs hit $4.9bn—more than the total raised by UK fintechs throughout the whole of 2020 ($4.57bn).
It’s clear to see that after the initial Covid-19 and Brexit-related dip in funding (and subsequent down rounds), fintechs are back on top.
This year so far, fintechs in the UK have snagged $11.4bn in VC funding, with around half of that ($5bn) coming from US investors.
“As the UK’s flourishing fintech sector continues to drive more investment than ever before, our fintech companies are not just disrupting traditional financial sectors; they are working alongside them to ensure that everyone has the tools and knowledge they need to succeed financially,” Katja Palovaara, fintech programme lead at Tech Nation, said.
“Many of these fintechs are not only focused on helping people earn more and invest better, but on making the world a better and fairer place. We can’t wait to see what they do next.”
UK fintechs also saw their valuations skyrocket, with companies collectively valued at $340bn, up from $210bn last year—a 61 per cent increase in value between 2020 and 2021 and largely led by the likes of Revolut and Wise.
The spurt comes from fintechs raising increasingly large funding rounds.
The news comes of fintech’s bumper funding as Tech Nation announced the latest cohort of its growth programme, Fintech 4.0, which includes the likes of cryptocurrency app Ziglu, trading platform Wombat Invest and credit card startup Tymit.