The news: UK fintechs raised a record of more than $11.6 billion in funds across 713 deals last year—a 217% increase from 2020, per Innovate Finance, an industry body representing UK fintechs, using data from PitchBook.
UK fintechs accounted for 11% of all deals globally, placing the country at No. 2, behind the US but well ahead of Europe and any other region.
More on this: During 2020, UK funding stagnated for the first time in years due to the pandemic and uncertainty caused by the UK’s departure from the European Union. The smashed record shows that investors have fully recovered their confidence in the sector.
Government helps grease the wheels: The UK government wants to ensure that despite Brexit pressures, the country remains a global fintech hub and a hospitable environment for startup launches.
Bottom line: We predict that global fintech funding will reach a new apex during 2022, surpassing the $150 billion mark. Despite growth in Latin America and countries in the EU, the UK is likely to keep contributing an outsize share.