Key UK FinTech investment stats in Q3 2025:
- UK FinTech investments fell by 43% YoY in Q3
- Deals over $100m halved as investors shifted focus towards smaller deals
- Bite Investments, a London-based WealthTech specialising in private market technology, secured one of the top UK FinTech deals of the third quarter with a $25m funding round
UK FinTech investments fell by 43% YoY in Q3
In Q3 2025, the UK FinTech sector continued to experience a slowdown in both deal activity and total funding compared to the previous year.
A total of 59 deals were recorded, marking an 8% decline from the 64 deals completed in Q3 2024 and a 17% drop from the 71 deals seen in Q2 2025.
Funding totalled $1.1bn, down 43% from the $1.9bn raised in Q3 2024 and 24% lower than the $1.4bn secured in Q2 2025.
The decline in both funding and deal volume highlights a period of investor caution, as capital allocation remains subdued amid continued market uncertainty.
The average deal size in Q3 2025 stood at $18.4m, compared to $29.7m in Q3 2024 and $20.2m in Q2 2025, indicating a pullback in larger rounds and a greater tilt towards smaller, more measured transactions.
Deals over $100m halved as investors shifted focus towards smaller deals
Funding from deals under $100m reached $535m in Q3 2025, down 21% from $680m in Q3 2024 but showing a 17% increase over the $458m recorded in Q2 2025.
Larger deals valued at $100m or more totalled $551m in Q3 2025, representing a sharp 55% decline from the $1.2bn raised in Q3 2024 and a 43% drop from the $973m secured in Q2 2025.
This steep reduction in large-scale transactions underscores a continuing retreat from big-ticket investments, as investors shift focus towards smaller, more capital-efficient FinTech firms and later-stage companies demonstrating strong fundamentals.
Bite Investments, a London-based WealthTech specialising in private market technology, secured one of the top UK FinTech deals of the third quarter with a $25m funding round
The strategic growth investment was from NewSpring Growth, the equity strategy of NewSpring Capital.
The funding represents a key milestone in Bite Investments’ mission to democratise access to alternative investments and enhance the way investors and asset managers interact within private markets.
Its flagship cloud-based platform, Bite Stream, serves as an end-to-end digital solution enabling users to manage onboarding, communications, and portfolio oversight through a single integrated interface.
With NewSpring’s backing, Bite Investments aims to accelerate the global scale of Bite Stream, strengthen its workforce, and expand its service capabilities.
The investment underscores the company’s growing influence in transforming how institutional and retail investors engage with private markets, as it continues to drive efficiency, transparency, and accessibility across the alternative investment ecosystem.
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