Key UK WealthTech investment stats in 2024:
- UK WealthTech investments dropped by 59% in 2024 YoY
- Abound, a leading credit technology company, secured the largest UK WealthTech deal for the year with a funding round of $1bn
- Excluding the Abound deal, the average deal value dropped to $16.1m amid market uncertainties
UK WealthTech investments dropped by 59% in 2024 YoY
In 2024, the UK WealthTech sector experienced a substantial downturn in both deal activity and total funding compared to the previous year.
Only 89 deals were recorded in 2024, representing a sharp 67% decline from the 272 deals completed in 2023.
This marks the lowest number of deals in the past five years, highlighting a significant contraction in investor appetite as market conditions remain challenging.
Total funding in 2024 reached $2.4bn, reflecting a 59% drop from the $5.8bn raised in 2023.
However, this figure is skewed by a single $1bn funding round secured by Abound, a leading London-based credit technology company using Open Banking and artificial intelligence to offer more affordable loans.
Excluding this deal, total funding would have been $1.4bn, representing a more drastic 76% decline.
This steep drop suggests a cautious approach from investors, who may be prioritising capital preservation and focusing on well-established firms rather than early-stage or high-risk ventures.
Excluding the Abound deal, the average deal value dropped to $16.1m amid market uncertainties
The average deal value in 2024 was $26.5m, a notable 26% increase from the $21.4m average in 2023 and a substantial rise of over 2x from the $8.5m average in 2020.
However, the Abound deal significantly inflated the figure.
Without it, the average deal size in 2024 would be $16.1m, marking a 25% decrease from 2023 levels.
This suggests that while a few large deals continue to attract capital, the broader market is seeing smaller investments as investors remain selective.
As economic uncertainty and regulatory pressures persist, UK WealthTech firms may need to adapt to a more selective investment landscape, where funding is concentrated among the most resilient and high-growth opportunities.
The presence of a single major deal in 2024 underscores the uneven distribution of capital, with many firms facing a tougher environment for securing investment.
Abound, a leading credit technology company, secured the largest UK WealthTech deal for the year with a funding round of $1bn
This significant funding follows Abound’s rapid growth and achievement of profitability just three years after its launch.
The new capital includes a multi-year asset-backed debt financing arrangement from Citi, based on loan originations, and a Series B equity round led by Silicon Valley’s GSR Ventures.
Abound has issued over $400m in loans to date and plans to double its workforce to 130 employees this year.
The company’s AI-powered technology, Render, analyses customers’ bank transaction data to tailor loan repayment plans based on individual financial situations, contrasting with traditional credit checks that rely on broad statistical averages.
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