UK fintech funding ranked second internationally within the first half of 2023, regardless of a 78 per cent year-on-year drop in funding volumes.
Analysis from market intelligence platform Tracxn discovered that UK fintechs raised $2bn (£1.5bn) within the first six months of this yr, down from $9.1bn within the first half of 2022.
Nonetheless, the UK remained in second place as the decline in fintech funding is mirrored worldwide, Tracxn stated.
The primary quarter of 2023 was the least funded quarter for UK fintechs since 2020, at $673m.
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$1.13bn was raised within the second quarter, making up virtually two thirds of the first-half funding.
Tracxn additionally famous a dearth of preliminary public providing (IPO) exercise within the sector.
Just one UK-based fintech went public within the first half of 2022, after which there have been no IPOs within the following 12 months.
Nonetheless, 43 acquisitions had been recorded within the first six months of 2023, as in opposition to 40 within the second half of2022 and 44 within the first half of 2022.
“Cryptocurrencies, regtech and banking tech are the top-performing segments within the fintech sector, based mostly on funding within the first half of 2023,” Tracxn stated.
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“The cryptocurrencies phase is the highest-funded phase, accounting for nearly 34 per cent of the full funding acquired within the UK fintech area within the first half of 2023. Whereas funding into cryptocurrency startups throughout the globe is witnessing a declining pattern, the UK area is displaying promise as the best funded phase within the sector.”
Augmentum, Lloyds Banking Group and Triple Level had been the highest traders within the UK fintech area within the first half of 2023, Tracxn discovered.
Triple Level, Ahead Companions and Founders Manufacturing facility had been the lead traders in seed-stage investments.
CommerzVentures, Augmentum, and Northzone had been probably the most lively traders within the early stage, whereas HSBC Company Ventures, SoftBank Imaginative and prescient Fund and Rocket Web had been probably the most lively traders within the late stage.