By Oliver Smith on Thursday 6 January 2022
Huge $11.6bn in funding is nearly 3x what fintechs raised in 2020.
Last year saw a phenomenal return to fundraising form for the UK fintech sector, which collectively raised $11.6bn during the calendar year.
According to Innovate Finance, and harnessing data from PitchBook, the sector smashed its pre-pandemic record of $4.9bn which was raised in 2019 and the lower $4.1bn which was raised in 2020.
Globally the UK’s figures stack up well, with total deals (713) accounting for 11 per cent of the volume of global fintech investment deals last year.
By value of deals, the UK continues to lead in Europe, significantly ahead of Germany ($4.4bn), France ($2.3bn), Sweden ($1.7bn) and the Netherlands ($1.6bn).
Only the US remains ahead, with a whopping $46bn of fintech investment last year, helping to push global investment in the sector to $102bn, a 183 per cent increase on 2020.
Looking ahead, Hirt said: “it’s time to also properly address the funding gap for underrepresented founders, if we are to create a truly sustainable and forward-looking sector.”
Unfortunately, this is where the UK continues to lag, female fintech founders received just 9 per cent of all capital invested in 2021, a drop on the 13 per cent that female founders received in 2019.