Fintech is back at the top of the UK’s most funded startup sector, according to new analysis from HSBC Innovation Banking and Dealroom.
In 2023, the energy sector overtook financial technology for the first time to become the UK’s most funded startup sector. But in the first quarter of 2024, fintech is back with $1.4 billion raised in 73 rounds – including notable late-stage rounds for Monzo, Flagstone and PPRO.
Overall, UK startups raised $3.9 billion in the first quarter and there are signs that VC investment levels have stabilized since the second half of 2022 following a dramatic global reboot.
While London remains the UK’s top venture capital city in 2024, funding will continue to be distributed to innovation hubs across the country, with Edinburgh, Brighton and Cambridgeshire all experiencing significant growth.
Meanwhile, the UK remains the number one destination in Europe for startup innovation and investment. British startups raised almost as much in the first quarter as their German and French competitors combined. The UK also ranks third globally, behind only the US and China and ahead of India.
Simon Bumfrey, head of technology and life sciences at HSBC Innovation Banking UK, said: “This data reflects a busy start to the year for the UK innovation ecosystem – from growth in investment in established and emerging areas such as fintech and quantum computing, to expansion.” There With regional technology hubs across the country, there is much to celebrate.”