Fintech retakes top spot for UK startup investment

Fintech is once again the UK’s best-funded startup sector after climate tech secured the most investment in 2023.

In the first quarter of 2024, UK fintech companies raised $1.4bn across 73 rounds, according to data from Dealroom and HSBC Innovation Banking.

Fintech funding rounds over the period include £340m raised by challenger bank Monzo and the £18.8m raised by Manchester-based AccessPay.

Fintech has historically been one of the UK’s leading technology sectors. However, last year climate tech startups accounted for nearly a third of all investment raised.

More broadly, startup funding levels stabilised in the first quarter, with total levels of investment standing at $3.9bn – the highest in Europe. However, it remains down on the $4bn raised in the first quarter of 2023 and significantly lower than the $12bn peak in the first quarter of 2022.

It follows declining levels of startup investment since the second half of 2022 as macroeconomic factors, such as rising interest rates, caused investors to take a more cautious approach.

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