Despite global slowdown, UK FinTech investment grows 📈; While most companies are slowing down, Ramp just had its fastest growth month ever 🤯; Banks might be driving the next big wave of layoffs 😔
Good Morning FinTech, 21 July
Good morning Everyone,
And happy Thursday! Today’s issue is the best one this week. We’re going to look at the UK and how it managed to grow FinTech investment amid the global slowdown (and what this shows), Ramp crushing the numbers while most startups are slowing down (+lessons to learn & their playbook), and why banks might be the next big driver of layoffs. Let’s jump straight into the interesting stuff:
Despite the global slowdown, UK FinTech investment grows 🇬🇧📈
New data 📊 The global investment into FinTech was flat in the first half of the year. In fact, as written yesterday, the global FinTech funding dropped by one-third in Q2 to continue a trend of declining investing this year.
But there’s one outlier here - the United Kingdom which saw a 24% year-on-year increase in FinTech investments during the same time period, according to data from Innovate Finance.
More on this 👉 Some more interesting data you should know:
Innovate Finance reports that UK FinTechs have raked in £7.6B in funding, only second to the US (£20.8B), more than the rest of Europe combined, and double the amount of Germany (£2B) and France (£1.9B). That’s solid!
The figures from data platform Beauhurst show that during the first quarter of 2022, equity investments into UK FinTech companies hit a ten-year high of £2.5B.
The number of deals during this period dropped to roughly 149, down from a record 170 in the first quarter of 2021.
Notable deals include a £730M investment secured by mobile payment provider Checkout.com in a Series D in January and a lofty £210M pooled together by automated loans company Lendable in March.
What does this mean? 🤔 In short, this shows that the UK continues to be the global FinTech hub. Here’s the takeaway: