Report: UK Fintech Funding Takes a Plunge for 2nd Year!

According to a report by Tracxn, Fintech funding in the UK has decreased for the second consecutive year. The report states that total funding into UK Fintech early-stage firms fell 63% to $4.2 billion in 2023 from $11.2 billion in 2022, with the number of $100 million+ funding rounds dropping from 25 to 9 over the same period. The report also highlights a steady decline in funding throughout the year, with Q3 being the least funded quarter since 2019. The sectors of Fintech that performed the best were banking, crypto, and alternative lending, although all three experienced declines compared to 2022. Despite the decline in funding, the report claims that London remains the second top city globally for Fintech funding, following San Francisco. Tracxn suggests that the decline in Fintech funding is not due to a lack of innovation, but rather the overall funding environment for VC activity.