FinTechs have raised more than double so far in 2021 compared to 2020 as a whole
UK fintechs have raised $ 11.4 billion so far this year, down from just $ 4.57 billion last year
Image source: Cytonn Photography / Unsplash
Funding and fintechs go hand in hand, especially with the rise of mega-towers, and according to Tech Nation, fintech funding has skyrocketed in the last quarter.
New data from Tech Nation shows that in the last quarter venture capital investments in UK fintechs reached $ 4.9 billion, more than the total raised by UK fintechs throughout 2020 ( $ 4.57 billion).
It’s clear that after the initial drop in funding linked to Covid-19 and Brexit (and subsequent drops), fintechs are back on top.
This year, so far, fintechs in the UK have landed $ 11.4 billion in venture capital funding, of which about half ($ 5 billion) has come from US investors.
“As the UK’s thriving fintech industry continues to generate more investment than ever before, our fintech companies aren’t content to simply disrupt traditional financial sectors; they work alongside them to make sure everyone has the tools and knowledge they need to be financially successful, ”said Katja Palovaara, FinTech Program Manager at Tech Nation.
“A lot of these fintechs aren’t just about helping people earn more and invest better, but also to make the world a better and fairer place. We can’t wait to see what they do next.
UK fintechs have also seen their valuations skyrocket, with companies collectively valued at $ 340 billion, up from $ 210 billion last year, a 61% increase in value between 2020 and 2021 and largely led by Revolut and Wise.
Tech Nation’s Future Fifty alumni, Revolut, became the UK’s most valuable fintech company this year, overtaking Natwest, at a valuation of around £ 33 billion.
The push comes from fintechs who are raising ever larger funding rounds.
So far in 2021 we’ve seen TrueLayer (£ 130million), Revolut ($ 800million) and Starling Bank (£ 322million) raise over £ 100million.
The news comes from exceptional fintech funding as Tech Nation announced the latest cohort of its growth program, Fintech 4.0, which includes the Ziglu cryptocurrency app, the Wombat Invest trading platform and the card startup of Tymit credit.