Key UK FinTech investment stats in Q1 2026:
- UK FinTech investments increased by 32% YoY in Q1
- Trend analysis showed a projected 26% growth in funding for 2026 driven by a surge in deals over $100m
- Allica Bank, a digital business bank focused on serving established small and medium-sized businesses, raised $155m in a Series D round, marking one of the biggest UK FinTech deals of the quarter
UK FinTech investments increased by 32% YoY in Q1
UK FinTech investments opened 2026 on a strongest footing, with Q1 2026 recording $1.9bn in total funding across 67 deals.
Compared to Q1 2025, when the sector raised $1.4bn from 58 transactions, funding grew by 32% and deal count rose by 16%, pointing to a meaningful recovery in both capital deployment and deal-making activity.
Set against 2025’s total of $6bn across 241 deals, Q1 2026 already accounts for 31% of last year’s funding in a single quarter.
The average deal size in Q1 2026 stood at $28.1m, up from $24.6m in Q1 2025, reinforcing the picture of a market in which individual transactions are carrying greater weight.
Trend analysis showed a projected 26% growth in funding for 2026 driven by a surge in deals over $100m
Should the Q1 2026 pace be sustained throughout the year, 2026 would close with 268 deals and $7.5bn in total funding, representing an 11% increase in deal volume and a 26% rise in funding compared to the 241 deals and $6.0bn recorded across 2025.
UK FinTech’s funding growth in Q1 2026 was driven in part by a notable recovery in smaller transactions, with deals under $100m generating $759m, up 59% from $478m in Q1 2025.
That said, it is larger deals that continue to define the funding landscape: transactions of $100m or more contributed $1.1bn in Q1 2026, an 18% increase on the $951m recorded in Q1 2025, and accounting for 60% of total quarterly funding.
Across 2025, the equivalent split saw deals of $100m or more represent 65% of total funding at $3.9bn, suggesting that while large deals remain the dominant force, smaller transactions are beginning to recover ground.
The broad-based nature of Q1 2026’s growth, with both size segments expanding year-on-year, may indicate that investor confidence is beginning to extend beyond the handful of marquee transactions that characterised much of 2025’s activity.
Allica Bank, a digital business bank focused on serving established small and medium-sized businesses, raised $155m in a Series D round, marking one of the biggest UK FinTech deals of the quarter
The round, which values the company at $1.2bn, was supported by Ventura Capital, GLG and Sona AM, alongside existing investors TCV and Blue Owl.
Since launching its lending services in 2020, Allica has lent the equivalent of $5bn and secured the equivalent of $6.6bn in customer deposits, and now serves over 30,000 SMBs, representing around 5% of the market.
The bank offers commercial mortgages, asset finance and bridging finance, and entered the embedded finance market through the acquisition of London-based FinTech Kriya in October 2025.
Proceeds will support continued lending growth, deeper investment in its proprietary technology stack including AI-enhanced SMB lending solutions, and the bank’s first expansion beyond the UK, with a target of capturing 10% of the SMB finance market by 2028.
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