Tech Nation has added 30 financial technology scaleups, hailing from across the UK, to the fourth edition of its growth programme amid record investment in the sector.
The new recruits cover areas including insurance, investment, blockchain and cryptocurrencies. On average, they have 24 staff each, turnover of about £190,000 and have raised about £130m in total.
Fintechs have been enrolled from across the country for the UK government-backed programme, with firms from Cardiff, Edinburgh, Bristol, Luton, Macclesfield, Belfast, Winchester, Newbury, Telford and Brighton joining 18 London-based companies.
Companies accepted onto the programme have access to networking events, meetings with other fintechs, and insights from established fintech entrepreneurs, investors and partners. It aims to give these established companies the tools and knowledge they need to scale.
This is at a time when investors have a big appetite for the sector. According to Tech Nation, venture capital investment in the UK fintech sector is growing at a rapid rate. So far this year, investment in UK fintechs has reached $11.4bn, more than double the amount for the whole of last year.
John Glen, economic secretary to the Treasury, said: “It’s great to see 30 new companies joining Tech Nation’s fintech programme. Our backing for this scheme is one part of our commitment to making the UK a great place for fintech companies to set up and scale up. With investment in UK fintech soaring, and 40% of these new companies based outside of London, investors are clearly seeing the enormous potential in this sector across the UK.”
Tech Nation lead on the programme, Katja Palovaara, said: “Many of these fintechs are not only focused on helping people earn more and invest better, but on making the world a better and fairer place. We can’t wait to see what they do next.”
The broad mix of fintechs by region was welcomed by Christopher Sier, chair of Fintech North. “The diversity of the companies that have been selected is fantastic and testimony to the vibrancy of the UK fintech scene, both in terms of product and service, but also in terms of geography,” he said. “Of the winners, almost half were from outside London, confirmation of the need for a regional approach to supporting the UK fintech sector and validation of the key findings in the recent Kalifa review on fintech.”
The Kalifa fintech review, which was published in February, made recommendations on spreading the industry nationally.
Congratulating Cardiff-based Yoello’s place in the cohort, Sarah Williams Gardner, CEO of Fintech Wales, said: “The depth and breadth of the thriving Welsh fintech ecosystem…was recently highlighted in the UK strategic fintech strategy led by Ron Kalifa – and there’s plenty more to come.”
Stephen Ingledew, executive chair of Fintech Scotland and Fintech 4.0 judge, said: “Fintech innovation is making a significant contribution to the development of the digital economy across the UK and the Tech Nation fintech growth programme is a valuable initiative supporting innovative enterprises, including ground-breaking firms from Scotland such as DirectID, Zumo and WhisperClaims.”
