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Q3’s results are in, and it’s good news for the fintech industry. With $3.3 billion raised, a significant $1 billion more than any other sector, fintech has maintained its top ranking for 2024.
The news comes via Dealroom’s
UK Q3 Innovation Update, which shows that though investment in UK startups slowed over summer, UK startups still commanded $2.9 billion of new capital in Q3, with the largest share raised at series B and C rounds.
So far, 2024 investment in the UK is tracking similar to 2023. And indicators show that UK-headquartered VCs are expected to surpass the previous record of $11.5 billion raised in the bumper year of 2021, by raising $12.2 billion in fresh funds by the end
of 2024.
5 UK roles to apply for today
- Finance Business Intelligence Manager, NatWest, Edinburgh
- Senior Product Manager, Epsilon, Epsom
- Principal Engineer, Ripple Labs, London
- Senior Data Engineer, Leidos, Farnborough
- Economics Consulting Associate Director/Director, Grant Thornton, South
East London
Once again, the UK is faring well compared to neighbouring countries. In fact, UK startups have raised almost as much venture capital in 2024 as France and Germany combined.
Through Q1 to Q3, UK startups raised $12.4 billion in venture funding, while in the same time frame, Germany and France secured $6.7 billion and $6.5 billion, respectively. London alone has raised more than either nation, with $8.7 billion investment this
year so far.
Big winners
There was plenty of good business news to celebrate in Q3.
London-based femtech business Flo became Europe’s first femtech unicorn after raising $200 million in the greatest fundraising deal for a UK startup.
The next biggest was $120 million for payroll fintech Cloudpay in August, while London-based Form3 secured $60 million in series C last month.
Other leading industries were biotech, which had three £90 million+ rounds, digital health, quantum computing, and AI chatbots.
As fintech continues its reign as the UKʼs most funded aggregate sector in 2024, it’s interesting to note that in joint second place, at $1 billion behind fintech’s £3.3 billion, are health and enterprise software.
Transportation and energy also commanded high investment, at $2 billion and $1.8 billion respectively.
Industry insights
Julian Schoemig, CEO and co-founder of Diesta, a platform transforming the way insurance companies process B2B premium payments, says 2024 has been an exciting year. The company recently closed a €3.5 million seed extension funding round with U.S. fintech
investors to fuel its growth.
“Raising capital in todayʼs cautious market can be challenging but rewarding, especially with interest from overseas investors and the right partner,” Schoemig says.
“Even with recent funding, cash flow management remains crucial as we balance product development and revenue growth. On the client side, the need for cost relief and faster payments aligns well with current market dynamics. Weʼre excited to see what the
rest of the year holds.”
Remus Brett, general partner at LocalGlobe & Latitude, takes a broader view and speaks about the fintech industry as a whole.
“The UK fintech sector is back. Many scaleups, having emerged from a challenging funding market stronger than ever, are making a serious dent in incumbentsʼ market share,” he says.
“Tide, for example, now boasts over 10% of the SME banking market and Cuvva underwrites 11% of all new UK car insurance policies. A new generation of AI native startups is reshaping fintech from consumer to enterprise transformation.”
Optimistic words indeed. This is all great news of course for anyone working in these companies, and anticipating a generous end-of-year bonus, but also for job seekers.
With 2021-like investment pouring into the sector, the fintech job market is set to boom.
As gen AI and other new technologies continue to disrupt traditional finance, companies will need talent to support expansion across software development, product management, data analysis, cybersecurity, and compliance.
For those looking to break into or advance in fintech, there couldn’t be a better time to job hunt.
Ready to find a new role? Visit the Finextra Job Board to see what’s on offer.