Fintech leads the way for UK technology investment
Fintech is back on top as the UK’s most-funded startup sector according to new analysis from HSBC Innovation Banking and Dealroom.
In 2023, energy surpassed fintech to be the UK’s most funded startup sector for the first time. But In Q1 2024 with $1.4 billion raised across 73 rounds – including notable late-stage rounds for Monzo, Flagstone and PPRO – fintech is back.
Overall, UK startups raised $3.9 billion in the first quarter and there are signs that VC investment levels have stabilised following a sharp global reset from H2 2022.
While London remains the number one city in the UK by venture capital raised in 2024, funding continues to be distributed to innovation hubs across the country, with Edinburgh, Brighton and Cambridgeshire all seeing significant growth.
Meanwhile, the UK remains the number one destination in Europe for startup innovation and investment. UK startups raised almost as much as German and French peers combined in Q1. The UK also remains third globally, behind just the US and China, and ahead of India.
Simon Bumfrey, head, technology and life sciences, HSBC Innovation Banking UK, says: “This data reflects a busy start to the year for the UK innovation ecosystem – from growth in investment in established and emerging areas like fintech and quantum computing to expansion of regional tech hubs across the length and breadth the country, there is much to celebrate.”
