FinTech Futures Jobs: Fintech is the leading UK industry for VC investment in 2024
After a mixed few years, UK fintech is firmly on the up; the industry has been named as leading the VC landscape in 2024.
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According to Dealroom.co’s latest UK Innovation Update, created in collaboration with HSBC Innovation Banking, fintech has attracted more funding than any other industry in 2024 to date.
Fintech start-ups have raised an impressive $2.7 billion so far this year, surpassing other key industries such as transport, energy, enterprise software, and health.
But the fintech boom isn’t down to start-ups alone, it’s also thanks to established players securing mega-rounds of funding.
Abound, the London-based loans company founded in 2020, secured the largest fintech investment of the year with a £400 million late-VC round in May.
This deal ranked as the third-largest investment overall in the UK, following only Cambridge’s automated driving pioneers Wayve and its $1.1 billion raise in May, and Monzo’s combined £340 million and $190 million rounds in March and May respectively.
Leading sectors
Unless you’ve been hiding under a rock, you won’t be surprised to hear that Gen AI is the next dominant sector, with UK-based AI start-ups raising over $2 billion so far this year – although Wayve’s $1.1 billion mega Series C round from investors Microsoft, Nvidia and Softbank did account for over half of this. Still, AI investment is on track to reach an all-time high by year-end.
Comparatively, investment in fintech shows broader investment across a range of companies.
Other sectors experiencing notable growth include energy storage, quantum computing, and green data centres. For example, Highview Power, a key player in energy storage, secured £300 million in investment. Meanwhile, Quantinuum raised $300 million to advance quantum computing technologies, and Deep Green, a provider of sustainable data centre solutions, received £200 million.
Transportation, which encompasses electric vehicles (EVs) and autonomous driving, was the second-best VC-funded industry, attracting $1.7 billion so far.
Meanwhile, another critical industry for the UK’s future, clean energy, secured $1.5 billion and landed third place.
Enterprise software bagged $1.4 billion in VC investment, placing fourth, while the health sector raised $1.3 billion, underscoring the ongoing demand for digital health solutions and biotech innovations, thereby rounding out the top five.
Mega rounds
With fintechs securing massive funding, there is renewed confidence and energy in the sector.
Alongside the successes of Abound and challenger bank Monzo, wealth management innovator Flagstone bolstered fintech’s dominance with a substantial £108 million funding round. It offers white-label and API-integrated solutions that lets companies offer their customers competitive, user-friendly savings options.
What gives fintech an edge in attracting investment is its adaptability and breadth of application. As the industry is made up of a wide range of sub-sectors, including lending, insurtech, wealth management, digital banking and payment processing, its diversity ensures agility and innovation are always on.
Of course, the industry benefits from strong regulatory support too. Through programmes such as the Financial Conduct Authority’s sandbox, fintech companies have a favourable atmosphere for trial and expansion.
Overall, outlooks are sunny and investment in the UK is looking good. UK startups raised more VC investment than France and Germany combined in 2024; Germany and France each raised $4.3 billion in venture capital in the first half of 2024, compared to $9.4 billion raised by their UK counterparts.
Fintech firms raising $2.7 billion reflects not only the maturity of the sector but also the continued belief in its potential to revolutionise financial services.
And a growing demand for digital financial services, coupled with advances in AI, blockchain, and data analytics, are expected to fuel further innovation.
However, if you’re working somewhere where the innovation isn’t inspiring, and further investment looks patchy, it could be time to look for something new.
Two UK roles to apply for today:
Staff Platform Engineer, Ripple, London
Finance Business Partner, Hargreaves Lansdown, Bristol
Three US roles to apply for today:
Software Engineering Manager, GM Financial, Arlington
Software Quality Engineer, Paycom Payroll Llc, Oklahoma City
Finance and Accounting Technology Consultant, EY, Chicago
For hundreds more opportunities across fintech, visit the FinTech Futures Job Board today.
