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2021 is already a record year for UK fintech

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(Image credit: Shutterstock)

The UK fintech sector has enjoyed a record-breaking year so far, bringing in new capital as never before.

As reported by City AM, the sector has raised $5.7 billion in the first half of the year, more than in the whole of 2020. The previous annual record was set in 2019, at $4.6 billion.

In total, there have been 317 deals in this year, 13 of which were classified as “mega-rounds” - investments exceeding $100 million. During 2020, there were just seven mega-rounds. 

The two companies to secure the largest sums were payment startups Saltpay and Checkout.com, bringing in $500 and $450 million respectively. Starling raised $376 million, while Blockchain.com, a cryptocurrency wallet and trading platform, secured $300 million. Together with Rapyd, which also secured $300 million, these five companies rank among the top ten largest funding rounds across Europe.

These figures place the UK’s fintech sector second in the world, just behind the US, whose companies raised $26.7bn across 940 deals.

“This analysis clearly demonstrates that the appetite among international investors to fund high-growth, innovative firms has never been greater, and is a testament to the UK’s position as a world leader in Fintech,” said Janine Hirt, CEO at Innovate Finance, which compiled the figures.

“Fintech is one of the fastest-growing sectors of our economy and has a vital role to play in the UK’s economic and business recovery. To have secured record funding — in just six months — speaks to an enduring confidence in UK innovation, as well as our ability to build and scale world-class businesses.”