51 new companies join Tech Nation’s Fintech 5.0 to grow the UK Fintech sector

Tech Nationthe UK growth platform for tech scaleups, has announced the 51 companies that have been accepted into Fintech 5.0 – the fifth iteration of Tech Nation’s sector-specific growth program for fintech entrepreneurs to enable their start-ups to scale, both at home and abroad.

Companies accepted into the latest Fintech cohort are working to transform all areas of the financial sector; from insurance and investment, to blockchain and digital assets. The Fintech 5.0 cohort includes an ethical investment platform committed to addressing climate crises (Abundance), a credit card that helps young people build credit to jump-start their future (Keebo), and a platform to help people set up a will and a digital end-of-life plan to make things easier for bereaved loved ones (Kinherit).

Combined, the emerging fintech companies have raised more funding than any cohort in previous years, with a combined total raising of £149.2m (up from £128.1m last year).

Almost half (49 per cent) of the companies have at least one non-UK founder and they operate in 38 different countries (including the UK).

New record highs for fintech

The high-growth companies join the program as fintech grows significantly across the UK. The fintech sector has reached new heights, already receiving $9.3 billion in 2022 (January – August), up from $8.67 billion for the same period in 2021 ($13.2 billion in total in 2021), and 1 .quarter 2022 hit a quarterly record. investment in fintech in the UK (at $5.5 billion).

More than three-quarters of investment in UK fintech in 2022 so far ($7.2 billion) has come from US investors (up from half of investment in 1H 2021), demonstrating the international appeal of some of the UK’s fintech companies.

With 47 of the UK’s 130 tech unicorns being fintechs – and fintech accounting for almost half (four) of the 11 UK tech companies that became unicorns in H1 of 2022 – the sector is driving the UK as a leading unicorn hub. After the UK, the second largest unicorn hub in Europe is France, home to 11 fintech unicorns, followed by the Netherlands and Germany, which both have nine.

In 2022, the top four UK fintechs receiving the highest funding are FNZ (to $1.4 billion, growth equity), Checkout.com (to $1 billion Series D financing), Bloom ($300 million, Series A) and GoCardless ($312 million, Series G).

In 2022, Tech Nation’s Future Fifty alumni Checkout.com became the UK’s most valuable fintech company, surpassing Revolut (which is valued at $33 billion, and was the UK’s most valuable fintech in 2021) with a value of £40 billion. Together, UK fintech companies are valued at $371.9 billion, up 23 percent from $301.2 billion last year.

The aim of this year’s Fintech programme

Tech Nation’s six-month government-backed Fintech program was created to support fintech and insurtech companies in the UK. Companies accepted into the program have access to networking events with key stakeholders, peer-to-peer meetups and insight sessions delivered by established fintech founders, investors and partners, giving cohort members the tools and knowledge they need to scale.

This year’s successful applicants will have access to multiple insight sessions over six months (covering core issues, from investment to sales, partnerships and international expansion) delivered by later-stage founders, all focused on key scaling challenges, as well as regular networking opportunities (with investors, VC -ers, companies and peers).

Want Miller, Head of Growth at Tech Nation, said: “In 2022 we have seen another wave of fintech start-ups and scale-ups thrive in every region of the UK. With Q1 2022 setting a record for quarterly VC investment in UK fintech, and the UK now home to 47 fintech unicorns – with four new fintech unicorns created this year alone – it’s clear that the UK’s fintech sector is going from strength to strength . It is a pleasure to support these businesses on their scaling journey as they continue to cement the UK as a global fintech powerhouse.”

Ezechi BrittonCTO in residence at Impact X Capital and Fintech 5.0 Judge, said: “The caliber of startups in this year’s Tech Nation Fintech 5.0 program has been outstanding. Having the privilege of reviewing all these great startups just reinforces to me why the UK is leading the way in Fintech globally. Our technical and financial talent in this country is extraordinary, and I look forward to seeing what this next cohort achieves.”

Jelena Ewartco-founder of Upside partners and Fintech 5.0 Judge, said: “If the past few years have taught us anything, it’s that our ideal future isn’t just going to build itself. It was refreshing to see so many companies with real potential to empower us to lower the cost of our dreams and contribute to a world that truly values ​​us. This is not just finance imbued with modern technology; it is the start of a fintech rebellion built by the people for the people.”