Key UK FinTech investment stats in Q1 2025:
- UK FinTech funding recovered by 20% QoQ in Q1
- Deals over $100m increased by 2.4x QoQ as investors focused on larger deals
- Level, the UK’s leading lending company specialising in family law and probate proceedings, secured one of the biggest UK FinTech deals of the quarter with a $135m funding round
UK FinTech funding recovered by 20% QoQ in Q1
In the first quarter of 2025, the UK FinTech sector recorded 58 deals, down 52% from the 121 deals seen in Q1 2024 and 11% lower than the 65 deals closed in Q4 2024.
Total funding for Q1 2025 reached $1.4bn, marking a 30% drop from the $2bn raised in Q1 2024 but a 20% increase over the $1.2bn secured in Q4 2024.
The average deal size in Q1 2025 rose to $25m, compared to $18m in Q1 2024 and $18m in Q4 2024, suggesting that while deal activity has slowed, capital is being directed toward fewer, higher-value opportunities.
Deals over $100m increased by 2.4x QoQ as investors focused on larger deals
Funding from deals under $100m totalled $478m in Q1 2025, down 51% from the $982m recorded in Q1 2024 and a 41% decline from the $806m raised in Q4 2024.
Meanwhile, deals worth $100m or more brought in $951m, representing a 9% drop from the $1bn raised in Q1 2024 but a sharp 2.4x increase over the $387m seen in Q4 2024.
This rebound in large-ticket funding highlights a renewed investor focus on more established FinTech players, despite broader caution in the market.
Level, the UK’s leading lending company specialising in family law and probate proceedings, secured one of the biggest UK FinTech deals of the quarter with a $135m funding round
The round was led by Capricorn Capital and Pollen Street Capital.
Since its launch in 2017, Level has provided over $226m in financing to more than 1,650 clients navigating legal complexities, and its lending book has grown by 71% over the past year.
This latest capital injection is expected to accelerate its growth trajectory, particularly in a market where over $129bn of assets remain tied up in probate and inheritance tax receipts are forecast to rise by 30% to $12.9bn by 2029.
With its tech-enabled platform and focus on underserved legal finance segments, Level is well-positioned to capitalise on rising demand, offering crucial liquidity during probate delays and costly legal proceedings.
The funding will also support strategic leadership additions and board expansions, reinforcing Level’s ambition to scale as a dominant force in the legal finance space.
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