Fintech & Ecommerce

UK Fintech Funding Slashed by 8%

Fintech funding in the UK remained ahead of the levels seen in Europe and Asia amid a sharp global slowdown, but still decreased about 8% compared to its 2021 value

UK Fintech Funding


Recent data from the industry body Innovate Finance revealed that UK fintech sector attracted $12.5 billion worth of investors’ capital in 2022, down 8% from $13.5 billion recorded in 2021.

Global VC investment slowed down last year due to the rising interest rates, surging inflation and economic uncertainty caused by the war in Ukraine. Thus, global investment in fintech dropped by 30% from 2021, reaching $92 billion.

Compared to the worldwide decline, UK fintech funding seems to maintain pretty good condition. The UK still holds the second position in the global VC ranking, following the USA and outpacing India in third place.

"Our latest report shows that the UK is still receiving more investment in FinTech than all of the next 10 European countries combined, and remains second in the world only to the US. We must continue to work together with industry, government and regulators to build on this momentum and maintain the leadership of the UK as a global centre to start, scale and grow a FinTech business. This is perhaps more important now than ever before as FinTech continues to redefine financial services and provide greater financial support and access to consumers during the cost of living crisis.”
Janine Hirt, CEO of Innovate Finance

Globally, the VC investment slowdown was registered in both early and late-stage funding rounds. Venture funds deployed $23.3 billion into the earlier stage fintechs vs $31.5 billion in 2021 and $50.5 billion into late-stage fundraisers, compared to $82.4 billion in 2021.

However, seed investment rounds performed better than expected, surging to $7.5 billion in 2022, compared to the $5.8 billion they raised in 2021. Meanwhile, the growth and expansion private equity deals in 2022 attracted $10.7 billion, pretty much the same as in 2021.

The investment decline was characteristic of most industries last year. For instance, Innovate Finance assessed VC funding across 10 technology verticals, including SaaS, Artificial Intelligence and Life Sciences and found that VC activity in these sectors dropped by 56% from 2021 to 2022.


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Nina Bobro

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Nina is passionate about financial technologies and environmental issues, reporting on the industry news and the most exciting projects that build their offerings around the intersection of fintech and sustainability.