Key UK FinTech investment stats in 2024:
- UK FinTech funding halved in 2024 YoY
- Average deal value dropped to $18.5m as investors grew more selective
- Abound, a leading credit technology company, secured the largest UK FinTech deal for the year with a funding round of $1bn
UK FinTech funding halved in 2024 YoY
In 2024, the UK FinTech sector experienced a substantial decline in both deal activity and total funding compared to the previous year, signalling a more cautious investment environment.
A total of 323 deals were recorded in 2024, representing a 61% drop from the 830 deals completed in 2023.
Funding saw an even steeper decline, with UK FinTech firms raising $7bn in 2024, marking a 54% decrease from the $15.3bn secured in 2023.
If we compare to 2020, when the sector raised $12.4bn across 1,109 deals, the long-term volatility of the market becomes clear.
Despite an increase in total funding between 2020 and 2023, the significant decline in 2024 highlights a shift in investment priorities, with a greater focus on sustainable growth and profitability.
Average deal value dropped to $18.5m as investors grew more selective
The average deal value in 2024 was $21.8m, down from the $18.5m average in 2023.
While deal volume declined sharply, the increase in average deal size suggests that funding is being concentrated in fewer, more strategically important transactions.
As the sector navigates this downturn, UK FinTech firms may need to adapt to a more selective funding environment, focusing on operational efficiency and long-term resilience to attract investors in an increasingly competitive landscape.
Abound, a leading credit technology company, secured the largest UK FinTech 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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