The UK financial technology (fintech) sector attracted record levels of venture capital (VC) investment in the third quarter (Q3) of 2021, new figures have revealed.
The report, published by industry analyst Tech Nation, shows that British firms continue to be at the “cutting edge” of innovation.
According to the data, UK fintech recorded more than $4.9 billion (£3.6 billion) of VC investment in the three months to September 2021 – the highest amount ever taken in a single quarter.
It means the sector has now attracted $11.4 billion (£8.4 billion) in 2021 so far – more than double that of the whole of 2020 ($4.57 billion) with three months yet to go.
The record year was driven by huge investment in fintech unicorns (defined as those with an equity value of more than $1 billion) Cinch, a used car marketplace, and banking app Revolut, which recorded venture capital rounds of $1.2 billion (£0.9 billion) and $800 million (£588 million), in May and July respectively.
The fintech sector also now accounts for 11 of the 20 UK technology unicorns.
Commenting on the figures, Tech Nation fintech lead Katja Palovaara said: “UK firms have repeatedly demonstrated they are at the cutting edge of innovation in financial technology.
“The UK is a strong launchpad into international financial markets, and increasingly fintechs are looking to operate on a global basis – particularly in areas such as payments and open banking.”
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