Despite a global cooling of investment, UK fintech remains an exception
The UK fintech sector has grown 24 per cent year-on-year despite a global slowdown in investments.
Innovate Finance reports that UK FinTechs have raked in £7.6bn in funding, only second to the US (£20.8bn), more than the rest of Europe combined and double the amount of Germany (£2bn) and France (£1.9bn).
Despite the influx of funding, the growth in the first six months of 2022 has "paled" in comparison to the 217 per cent year-on-year growth reported for UK FInTech last year, when investment levels soared back to their pre-Covid highs.
The total capital invested in fintech globally for the first half of 2022 has flatlined year-on-year at £49.1bn. Innovate Finance suggesting that "geopolitics" has been the main culprit for investors tightening their purse strings.
However, not all is doom and gloom. The figures, from data platform Beauhurst, show that during the first quarter of 2022, equity investments into UK fintech companies hit a ten-year high of £2.5bn.
Interestingly the number of deals during this period dropped to roughly 149, down from a record 170 in the first quarter of 2021. This means that even though fewer deals are being struck, more money is being invested per deal.
"It is fantastic to see that UK fintechs are continuing to secure outstanding levels of investment… It is critical that we now keep up this momentum," said Janine Hirt, the chief executive officer of Innovate Finance.
"We must continue to work together and ensure the UK remains the best palace in the world to start, build and scale a fintech business," she adds.