The UK fintech sector has kicked off the year in confident mood, raising $2.9bn (£2.5bn) in the first three months -- a 331 per cent rise on the same quarter last year, reports the Daily Business.
The investment so far this year was achieved through 117 deals representing 69 per cent of the total amount invested in the whole of 2020.
Trade body Innovate Finance says the data shows investors becoming less risk-averse and returning to, if not surpassing, pre-pandemic levels of investment.
The first quarter of the year has also been marked by six mega deals ($100m+), nearly matching the seven reached in total in 2020. Amongst these, the standout deals for the sector include: Checkout.com, $450m; Starling Bank, $376m; Blockchain.com, $120m initially and then $300m; Rapyd, $300m; PPRO Financial, $180m initially and then $90m.
The start of the year has also seen an increasing number of UK FinTechs announce Initial Public Offerings (IPOs) and unveil plans to list their business on public markets. These listings are set to add to the maturing status of the UK FinTech sector.
The strong Q1 investment figures come off the back of the Kalifa Review, which set out recommendations for the future growth of the sector, and provided a roadmap to ensure long-term, sustained investment.
Charlotte Crosswell, CEO of Innovate Finance, said: "Following a tough and turbulent year in 2020, it's brilliant to see the speed and vigour with which investor confidence has returned and the Q1 investment figures for our FinTech sector look very encouraging.
"It's clear that the appetite to fund high-growth, ambitious businesses is back, and investors are ready to put capital behind UK FinTechs that are now so vital to our economic and business recovery.
UK fintech investment surges 331pc
FE Team | Published: April 18, 2021 22:52:20
UK fintech investment surges 331pc
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