Janine Hirt/Innovate Finance.
Investment into female founded fintechs ‘drops 66%’
Data reveals investment into female-founded fintechs dropped dramatically year-on-year in the first quarter of 2022, in contrast to healthy overall levels of performance.
Investment into fintechs with either a female founder or co-founder fell 66 per cent between H1 2021 and H1 2022, according to data compiled by Innovate Finance and gathered by PitchBook.
In the first half of 2022, £310m was invested into UK female-led fintechs across 20 deals, compared to £0.91bn across 32 deals in the first half of 2021.
Investments into UK female-led fintechs also fell proportionately, representing only 4 per cent of the total investments in UK fintechs in the first half of 2022, down from 15 per cent in the first half of 2021.
Last year, a total of £1.32bn was invested into UK female-led FinTechs across 55 deals, which Innovate Finance said indicates that there was already a slow down in investment into female-led Fintechs in the second half of 2021.
Two deals, Starling Bank’s £272m Series D and Generation Home’s £373m Series A, together accounted for £748m of that £1.32bn and both deals occurred in the first half of 2021.
The news comes despite fintech funding remaining strong in the UK overall.
The UK fintech sector grew 24 per cent year-on-year in the first six months of 2022, despite the global investment scene cooling down.
Data, also compiled by Innovate Finance, found UK fintechs raised a total of £7.6bn in funding, beating out the rest of Europe and only falling behind the £20.8bn raised by US firms.