The UK FinTech sector has retained its role as the top-ranking investment destination in Europe, with $4.1bn venture capital and growth private equity invested across a total of 408 deals.
This represents a YoY drop of 9% – an expected shift given the global Covid-19 pandemic and the surrounding economic challenges. Globally, the UK ranks second only to the US in total capital raised.
Overall, global FinTech investment for 2020 reached $44 billion across 3,052 deals. Total investment increased by 14% from 2019, highlighting another strong year for the sector worldwide, and showing resilience in the face of a challenging economic climate. The US attracted investment of $22 billion, up 29%, while Indonesia ranked third with $3.3 billion and India fourth with $2.6 billion.
The UK dominated European FinTech investment, accounting for just under half of the total $9.3 billion, and with more deals and capital invested than Germany, Sweden, France, Switzerland and the Netherlands combined.
Within Europe, Germany was second with $1.4bn of investment across 71 deals, up 50%. Sweden ranked third with $1.3bn of capital raised, with France ($522m) and Switzerland ($294m) closing out the top five.
Among global deals, the top three FinTech investment rounds were secured by Gojek in Indonesia ($3bn; payments and ride-hailing platform), and Stripe ($850m; payments) and Chime ($700m; challenger bank) in the US.
The largest investments in Europe were secured by payments company Klarna in Sweden ($650m), and challenger banks Revolut in the UK ($580m) and N26 in Germany ($570m).
London-based firms attracted 91% of capital invested in UK FinTech, receiving $3.8 billion across 310 deals. Among these, Revolut led the way with the largest UK deal ($580m), followed by Molo ($343m), and Monzo ($166m).
Investment backing for female founders in UK FinTech grew to $720m in 2020, accounting for 17% of total investment – an increase from 11% of the total in 2019.
Charlotte Crosswell, CEO of Innovate Finance, commented:
Source: Innovate Finance – Innovate Finance is the independent industry body that represents and advances the global FinTech community in the UK.