Tech Nation, the UK growth platform for tech scaleups, has announced the 51 companies who have been accepted into Fintech 5.0 – the fifth iteration of Tech Nation’s sector-specific growth programme for fintech entrepreneurs to enable their startups to scale, both at home and abroad.
Companies accepted into the newest Fintech cohort are working to transform all areas of the finance sector; from insurance and investment, to blockchain and digital assets. The Fintech 5.0 cohort includes an ethical investment platform which is committed to addressing climate emergency (Abundance), a credit card that helps young people build credit to jumpstart their futures (Keebo), and a platform to help people set up a Will and digital end-of-life plan to make things easier for loved ones left behind (Kinherit).
Together, the new fintech companies have raised more funds than any cohort in previous years, with a collective total raise of £149.2million (up from £128.1million last year).
Nearly half (49 per cent) of the companies have at least one non-British founder, and they operate across 38 different countries (including the UK).
New record heights for fintech
The high-growth companies join the programme as fintech grows significantly across the UK. The fintech sector has reached entirely new heights, already receiving $9.3billion in 2022 (January – August), up from $8.67billion for the same period in 2021 ($13.2billion overall in 2021), and Q1 2022 hit an all-time record for quarterly investment into UK fintech (at $5.5billion).
More than three quarters of investment made into UK fintech in 2022 so far ($7.2billion) has come from US investors (up from half of investment in H1 of 2021), showing the international appeal of some of the UK’s fintech firms.
With 47 of the UK’s 130 tech unicorns being fintechs – and fintech accounting for almost half (four) of the 11 UK tech companies that became unicorns in H1 of 2022 – the sector is driving the UK as a leading unicorn hub. After the UK, the next largest unicorn hub in Europe is France, home to 11 fintech unicorns, followed by the Netherlands and Germany, which both have nine.
In 2022, the top four UK fintechs to receive highest funding are FNZ (at $1.4billion, growth equity), Checkout.com (at $1billion, Series D funding), Bloom ($300million, Series A) and GoCardless ($312million, Series G).
In 2022, Tech Nation’s Future Fifty alumni Checkout.com became the UK’s most valuable fintech company, surpassing Revolut (which is valued at $33billion, and was the UK’s most valuable fintech in 2021) with a valuation of £40billion. Combined, the UK’s fintech companies are valued at $371.9billion, up 23 per cent from $301.2billion last year.
The aim of this year’s Fintech programme
Tech Nation’s six-month government-backed Fintech programme was created to support fintech and insurtech companies in the UK. Companies accepted into the programme have access to networking events with key stakeholders, peer-to-peer meetups, and insights sessions delivered by established fintech entrepreneurs, investors and partners, which give cohort members the tools and knowledge they need to scale.
This year’s successful applicants will gain access to multiple insight sessions over six months (covering core issues, from investment to sales, partnerships and international expansion) delivered by later-stage founders, all focused on key scaling challenges, as well as regular networking opportunities (with investors, VCs, corporates and peers).
Will Miller, chief growth officer at Tech Nation, said: “In 2022, we have seen another wave of fintech startup and scaleup companies thrive in all regions of the UK. With Q1 2022 setting an all-time record for quarterly VC investment into UK fintech, and the UK now being home to 47 fintech ‘unicorns’ – with four new fintech unicorns created this year alone – it’s clear that the UK’s fintech sector is going from strength to strength. It’s a pleasure to support these businesses along their scaling journey as they continue to cement the UK as a global fintech powerhouse.”
Ezechi Britton, CTO in residence at Impact X Capital and Fintech 5.0 Judge, said: “The calibre of startups in this year’s Tech Nation’s Fintech 5.0 programme has been outstanding. Having the privilege of reviewing all of these great startups just hammers home for me why the UK is leading the way in Fintech globally. Our technical and financial talent in this country is extraordinary and I can’t wait to see what this next cohort achieves.”
Jelena Ewart, co-founder of Upside Partners and Fintech 5.0 Judge, said: “If the last few years have taught us anything, it’s that our ideal future isn’t going to just build itself. It was refreshing to see so many companies with real potential to empower us to lower the cost of our dreams and to contribute towards a world that truly values us. This isn’t just finance imbued with modern tech; it’s the start of a fintech uprising built by the people for the people.”