UK fintech investment down 37% in H1 2024

The continued deline in fintech funding continues within the first half of 2024 however exhibits indicators of bottoming out, acccording to new figures from Innovate Finance.

The overall capital invested into fintech globally reached $15.9 billion in H1 2024, a lower of 19% in comparison with H2 2023 when whole funding amounted to $19.5 billion.

The capital invested in fintech within the first half of 2024 was unfold throughout 1,566 offers in comparison with 1,661 offers in H2 2023. There was a shift in direction of earlier stage offers and the common deal measurement was $10.2 million, reflecting a return to early-stage investments.

Total, the US acquired essentially the most funding in H1 2024, bringing in $7.3 billion in fintech capital throughout 599 offers, with the UK firmly in second place with $2 billion and 183 offers, rounded off by India with $837 million and 78 offers, China with $589 million invested throughout 30 offers and Germany with $462 million invested throughout 37 offers.

Within the first half of 2024 the UK acquired $2bn of funding, 37% down on the earlier six months. Nevertheless this was nonetheless extra funding than all different European nations mixed, representing 12.7% share of the worldwide market. Over the past 12 months, UK funding was additionally above pre-Covid funding ranges of 2018 and 2019.

Throughout the highest 10 international markets, the highest three nations proceed to be america, United Kingdom and India, while France is now not within the high 10.

Janine Hirt, CEO of Innovate Finance, says: “We consider the decline in funding because the 2022 peak could have bottomed out, nonetheless the market has not but proven that it has turned and this may occasionally not begin till 2025.

“The newest funding figures present rising international competitors for fintech funding, demonstrating the ever better want for the UK coverage and regulatory atmosphere to take motion to keep up our lead in fintech and in monetary providers extra extensively. Furthermore, with political uncertainty affecting funding elsewhere on the earth, the UK has a window of alternative to forge forward.