In 2022 quickly rising rates of interest geared toward countering surging inflation shifted investor behaviour in higher-risk property corresponding to enterprise capital.
Picture supply: Checkout.com’s
The UK’s fintech startups raised $12.5bn in 2022, a determine 8 per cent decrease than the earlier yr.
The information comes from fintech business physique Innovate Finance, and was initially reported by Metropolis AM.
Whereas the dip in funding represents a cooling of exercise by enterprise capital and different traders into the UK fintech market, London and an more and more vibrant regional fintech scene within the UK stayed forward of rivals.
“UK fintechs are holding the fort in securing nice ranges of funding in difficult financial occasions, a testomony to the resilience and energy of our sector,” Janine Hirt informed Metropolis A.M.
“Our newest report exhibits that the UK remains to be receiving extra funding in fintech than the entire subsequent 10 European nations mixed, and stays second on this planet solely to the US.”
Maybe unsurprisingly London fintech corporations grabbed a lot of the UK’s complete haul ($10.2bn), down about 5 per cent from 2021.
Globally fintech funding fell by practically a 3rd in contrast with 2021’s record-setting yr, suggesting larger resilience within the UK market.
“London’s fintech business has persistently confirmed itself to be each strong and impressive within the face of financial challenges,” mentioned Khalid Talukder, co-founder of London fintech agency DKK Companions.
Join our newsletters
