UK Fintech Funding Falls But London Leads Rivals

  • FinTech StartUps
  • 09.01.2023 08:55 am

Funding in the UK’s fintech sector slumped eight per cent last year but remained ahead of rival hubs in Europe and Asia amid a sharp global slowdown, according to newly published data from fintech industry body Innovate Finance.

Rising interest rates, surging inflation and the shockwaves caused by the war in Ukraine brought an end to a decade-long global venture capital frenzy last year.

According to the data, the UK’s fintech sector attracted some $12.5bn worth of capital, down from a bumper year in 2021 which saw $13.5bn pumped in the country’s fintech firms, according to the data.

London firms attracted the lion’s share of the investment with $10.2bn invested in 2022, down only five per cent from 2021 amid a sharp global slump.

Contractions in UK funding were markedly smaller than the global average as total global investment fell by nearly a third to $92bn, with the total number of investment deals around the world tumbling to 5,263 from 6,146.

Commenting on the findings, Khalid Talukder, co-founder of London fintech firm DKK Partners said, “London’s fintech industry has consistently proven itself to be both robust and ambitious in the face of economic challenges. As businesses brace for a turbulent 2023, fintech firms can play a vital role in enabling international trade, faster payments, and delivering FX services to companies seeking to boost productivity. Our industry can and will bounce back quickly, driving growth, job creation and enabling businesses to reach their full potential.”

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