Fintech
UK Fintech Investment Down 37% in H1 2024
According to new data from Innovate Finance, the fintech investment trend will continue in the first half of 2024, but is showing signs of slowing down.
Total capital invested in the global fintech sector reached $15.9 billion in the first half of 2024, down 19% from the second half of 2023, when total investment was $19.5 billion.
Fintech capital invested in the first half of 2024 was spread across 1,566 deals compared to 1,661 deals in the second half of 2023. There was a shift toward early-stage deals and the average deal size was $10.2 million, reflecting a return to early-stage investing.
Overall, the US received the most investment in H1 2024, contributing $7.3 billion in fintech capital across 599 deals, with the UK firmly in second place with $2 billion and 183 deals, rounded out by India with $837 million and 78 deals, China with $589 million invested across 30 deals, and Germany with $462 million invested across 37 deals.
The UK received $2 billion in investment in the first half of 2024, 37% less than the previous six months. However, it was still more investment than all other European countries combined, accounting for a 12.7% share of the global market. Over the past 12 months, investment in the UK has also been higher than pre-Covid investment levels in 2018 and 2019.
Among the top 10 global markets, the top three countries continue to be the United States, the United Kingdom and India, while France no longer makes it into the top 10.
Janine Hirt, CEO of Innovate Finance, says: “We believe the decline in investment seen since the 2022 peak may have bottomed out, but the market has yet to show any signs of turning around and this trend may not begin until 2025.
“The latest investment data shows increasing global competition for fintech investment, demonstrating the growing need for UK policy and regulatory action to maintain our leadership in fintech and wider financial services. Furthermore, with political uncertainty impacting investment elsewhere in the world, the UK has a window of opportunity to move forward.