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UK remains second for fintech funding despite downturn

Janine Hirt Innovate Finance. UK fintech funding totalled $5.1bn in 2023
Janine Hirt. Image cred: Innovate Finance

UK fintech funding fell by a steeper rate than the global average in 2023 but retained its second place for investment globally.

UK fintech funding decreased by 66% last year to $5.1bn (£4bn). The funding was spread across 409 deals, down from 592 deals in 2022.

Globally, fintech companies secured $51.2bn in 2023 – a 48% year-on-year drop. Investment was spread over 3,973 deals, down from 6,397 in 2022.

The findings are based on PitchBook data compiled by Innovate Finance, the UK’s industry body for fintech.

They show that the UK ranked only behind the US for fintech funding and massively outpaced the rest of Europe by securing more capital than the next 28 European countries combined.

The largest fintech funding round globally in 2023 was the $6.5bn raised by US firm Stripe at a sharply reduced valuation. This was followed by the $300m raised by UK and US-headquartered Rapyd....