Key UK FinTech investment stats in Q1 – Q3 2025:
- UK FinTech investments dropped by 33% YoY
- Funding is projected to drop by a quarter in 2025 as investors grow cautious
- Dojo, a London-based payments platform enabling high-speed, in-person transactions with robust “always-on” connectivity, secured one of the largest UK FinTech deals of the first three quarters with a $190m equity investment
UK FinTech investments dropped by 33% YoY
In Q1-Q3 2025, the UK FinTech market experienced a significant decline in both funding and deal activity compared with the same period in 2024.
A total of 188 deals were recorded in the first three quarters of 2025, marking a 27% decrease from the 258 deals completed over Q1-Q3 2024.
Funding saw an even sharper drop, falling 33% to $3.9bn from $5.9bn in the same three quarters last year.
This broad contraction reflects a cooling investment environment, with investors demonstrating a more selective approach amid continued macroeconomic uncertainty and pressures in the wider venture market.
Funding is projected to drop by a quarter in 2025 as investors grow cautious
If this pace were maintained for the remainder of the year, 2025 would close with 251 deals and $5.3bn in total funding.
This would represent a 22% decline in deal activity compared with the 323 deals recorded in 2024, and a 25% decrease in annual funding relative to the $7bn raised last year.
Such a year-end result would underscore a clear deceleration in what has historically been one of the world’s most active FinTech markets.
The average deal size in Q1–Q3 2025 fell to $21m, down from $22.7m in the same period in 2024, reflecting a more cautious deployment of capital despite the smaller pool of transactions.
This reduction indicates that not only has overall investment activity slowed, but the deals that are being completed are attracting slightly lower cheque sizes than last year.
While established UK FinTechs continued to secure funding, investors showed increased selectivity-particularly around earlier-stage opportunities-leading to a market characterised by more conservative valuations and tighter capital allocation.
Dojo, a London-based payments platform enabling high-speed, in-person transactions with robust “always-on” connectivity, secured one of the largest UK FinTech deals of the first three quarters with a $190m equity investment
The investment was from Vitruvian Partners.
This marks the company’s first external equity raise and is set to significantly accelerate its growth.
Founded in 2021, Dojo has quickly become a leader in the UK payments space, processing between 6m and 9m transactions daily and engaging with over 50m unique consumer cards each month.
The new capital will support its expansion across the UK and into key European markets such as Ireland, Italy, and Spain, while strengthening its capabilities to serve a wide spectrum of clients, from SMEs to large enterprises.
Backed by Vitruvian’s FinTech expertise, the investment will further enhance Dojo’s ability to scale its operations and capitalise on the growing shift towards embedded and integrated payments across the region.
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