UK fintech sector investment grew 24% y-o-y in H1 2022
In a recent report published by Innovate Finance, the company noted that the fintech sector in the UK experienced 24% growth in investment during the first half of 2022, when the number reached $9.1 billion.
With 3,046 deals, the international fintech sector saw investments worth $59 billion. The US remained the top destination for leading venture capital firms as US fintech startups attracted $25 billion worth of investment.
The UK came second followed by India, Germany and France. Compared to Q1 2022, overall fintech investments fell in Q2.
“It is crucial that we now maintain this momentum. The UK currently receives more investment in FinTech than the whole of Europe, second only to the US in the world. We must continue to work together – industry, government and regulators – to build on this leadership and ensure the UK remains the best place in the world to start, build and scale a FinTech business. This will positively impact not only the financial sector, but the entire population of the UK as a whole, who will benefit from new, innovative and more efficient products that deliver greater financial wellbeing, said Janine Hirt, CEO of Innovate Finance.
Challenging environment
Amid a sharp fall in the valuation of fintech giants such as Stripe and Klarna, the sector is going through one of its worst phases. Investments in the US financial technology sector fell by almost 10% in the first half of the year.
“Internally, we gain insight into what is happening in public markets. We take a closer look at publicly available data for stocks and bonds and consider early signals of market overheating, which we started to see in December 2021. We saw signals of a correction of the public markets not only on the technology side, but public stocks due to overvaluation,” said Erik Mostenicky, vice president of Fidelity International Strategic Ventures.
In a recent report published by Innovate Finance, the company noted that the fintech sector in the UK experienced 24% growth in investment during the first half of 2022, when the number reached $9.1 billion.
With 3,046 deals, the international fintech sector saw investments worth $59 billion. The US remained the top destination for leading venture capital firms as US fintech startups attracted $25 billion worth of investment.
The UK came second followed by India, Germany and France. Compared to Q1 2022, overall fintech investments fell in Q2.
“It is crucial that we now maintain this momentum. The UK currently receives more investment in FinTech than the whole of Europe, second only to the US in the world. We must continue to work together – industry, government and regulators – to build on this leadership and ensure the UK remains the best place in the world to start, build and scale a FinTech business. This will positively impact not only the financial sector, but the entire population of the UK as a whole, who will benefit from new, innovative and more efficient products that deliver greater financial wellbeing, said Janine Hirt, CEO of Innovate Finance.
Challenging environment
Amid a sharp fall in the valuation of fintech giants such as Stripe and Klarna, the sector is going through one of its worst phases. Investments in the US financial technology sector fell by almost 10% in the first half of the year.
“Internally, we gain insight into what is happening in public markets. We take a closer look at publicly available data for stocks and bonds and consider early signals of market overheating, which we started to see in December 2021. We saw signals of a correction of the public markets not only on the technology side, but public stocks due to overvaluation,” said Erik Mostenicky, vice president of Fidelity International Strategic Ventures.
