The UK has raised cash for a new investment fund worth up to £1bn to support growth-stage fintech companies.
The aim is to help Britain retain its standing as a competitive location for fintech investment.
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The fund is the product of a 2021 review led by former Worldpay vice chairman Ron Kalifa which found the UK an unattractive location for tech firms.
Advised by investment bank Peel Hunt, the fund will be offered to companies seeking Series C round funding and above.
This is the first time a UK government strategy has produced a fintech fund, though specialist funds such as Augmentum already exist.
2020 and 2021 saw a fintech boom in the UK with KPMG reporting a record number of UK fintech deals completed: 601 M&A, Private Equity and Venture Capital fintech deals were finalised in the UK in 2021, up 27% from 470 in 2020.
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By GlobalDataYet in Q1 2023, the Evening Standard reported that just seven applications for Electronic Money Institution status were approved. Regulatory approval in the UK continues to be a sore point for fintech firms.
According to KPMG’s annual Pulse of FinTech report, fintech investment in the UK fell 57% in the first half of 2023.
