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Fintech funding craters amid UK rate rise doom
from Monday 10 July 2023
by cityam
EXCLUSIVE
CHARLIE CONCHIE
FUNDING for the UK’s fintech sector cratered in the first half of the year as further interest rate hikes and economic volatility continue to weigh on investors’ appetite for the market, according to new data.
Total cash raised by UK fintech firms slumped to $2.9bn in the first six months of the year, down 37 per cent on the second half of 2022, according to new figures from industry body Innovate Finance, shared exclusively with City A.M.
Investment also began to taper off towards the end of the half, with 111 of the 199 deals in the first half of the year –some $2bn worth of the total – taking place in the first three months.
The slowdown comes amid a torrid 12 months for global fintech funding as investors sour on loss-making high-growth startups amid wild swings on the markets.
In the first six months of 2023, there were 1,714 deals globally with a total capital investment of $27.3bn, down from $31.7bn in-
