SlideShare a Scribd company logo
UK and global
Fintech
investment trends
& start-ups to
watch
Gerard Grech
Discover Global Network
London
April 2023
The information, views
and opinions in this
presentation were
collected and presented
independently of
Discover and do not
necessarily represent
Discover’s views
2
Founder and Chief Executive of Tech Nation
Co-author of the UK Government’s FinTech
Review in 2022
Member of the UK Government Digital Economy
Council
Member of the World Economic Forum Digital
Board
My experience
30% of all tech unicorns ever created in the
UK have graduated from one of its programs
90% of 1300 are scaling fast in the last 9 years
22% of $157Bn raised from UK start-ups in the
last 9 years graduated from one of our
programs
15x ROI to the UK Government & State
Source: Tech Nation, Year in Review 2023
Venture Capital investment in 2022 by country
$24 Bn
$30 Bn
$49 Bn
$234 Bn
Cumulative tech unicorns and $1B exits
140
120
100
80
60
40
20
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
122 UK
62 Germany
34 France
32 Sweden
25 Netherland
22 Switzerland
13 Spain
Start-ups guide European tech trends
44% of seed stage investment is in the US, 36% in Europe
and 20% in Asia and South America
Source: Tech Nation, Year in Review, 2023
Venture is a good bellwether of tech trends.
Overall funding is down, in line with market conditions.
Source: Innovate Finance 2023
While global FinTech investment was down 30%, it was
significantly higher than in 2020
Top 5 investment markets: US, UK, India, Singapore, Germany
Source: Innovate Finance 2023
Top 10 deals globally and in the UK
(A spread of focus on payments, crypto, b2b banking, buy
now/pay later, business banking)
Largest investment rounds into
UK fintech companies in 2022
Largest investment rounds into
global fintech companies in 2022
Source: CBInsights 2022
Fintech is maturing, with many sub verticals
Source: RoseCut, Nutmeg, Minted, 2023
Digital Wealth
Source: Monzo, Revolut & Wise 2023
Digital Banking
Source: GoCardless & Checkout.com 2023
Payment processing
Source: Yapily & Plaid 2023
Open Banking & embedded finance
Source: Fluency & Blockchain.com 2023
Central Bank Digital Currencies & Digital Securities
Source: SumUp & Paddle 2023
Payment and infrastructure
Source: Onfido, Comply Advantage and Remote 2023
Regulation and compliance Tech (RegTech)
Source: Zilch & Klarna 2023
Buy now, pay later
Source: Many Pets & Tractable 2023
Digital Insurance
£357M raised
• Expect an increase in M&A activity
• Lots of dry powder waiting to back the next wave of start-ups
• From Open Banking to Embedded & Seamless Finance
• AI and ML are being used to improve fraud detection, personalise customer
experience and automate processes
• FinTech maturing fast in some markets, with multiple sub verticals
• B2B investment is outpacing B2C investment
• Collaboration between FinTechs and traditional financial institutions is
increasing, bridging the gap
• Reg Tech is a fast growing trend, helping financial institutions comply with
regulations inc. automated reporting, ID verification & anti-laundering compliance
Conclusions
Thank you
for listening
The UK tech start-up sector has grown 16x in the last decade
Source: Tech Nation, Year in Review 2023

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DisocoverGlobalNetwork_05Apr_LSB_v1.pdf

  • 1. UK and global Fintech investment trends & start-ups to watch Gerard Grech Discover Global Network London April 2023
  • 2. The information, views and opinions in this presentation were collected and presented independently of Discover and do not necessarily represent Discover’s views 2
  • 3. Founder and Chief Executive of Tech Nation Co-author of the UK Government’s FinTech Review in 2022 Member of the UK Government Digital Economy Council Member of the World Economic Forum Digital Board My experience 30% of all tech unicorns ever created in the UK have graduated from one of its programs 90% of 1300 are scaling fast in the last 9 years 22% of $157Bn raised from UK start-ups in the last 9 years graduated from one of our programs 15x ROI to the UK Government & State
  • 4. Source: Tech Nation, Year in Review 2023 Venture Capital investment in 2022 by country $24 Bn $30 Bn $49 Bn $234 Bn Cumulative tech unicorns and $1B exits 140 120 100 80 60 40 20 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 122 UK 62 Germany 34 France 32 Sweden 25 Netherland 22 Switzerland 13 Spain Start-ups guide European tech trends 44% of seed stage investment is in the US, 36% in Europe and 20% in Asia and South America
  • 5. Source: Tech Nation, Year in Review, 2023 Venture is a good bellwether of tech trends. Overall funding is down, in line with market conditions.
  • 6. Source: Innovate Finance 2023 While global FinTech investment was down 30%, it was significantly higher than in 2020 Top 5 investment markets: US, UK, India, Singapore, Germany
  • 7. Source: Innovate Finance 2023 Top 10 deals globally and in the UK (A spread of focus on payments, crypto, b2b banking, buy now/pay later, business banking) Largest investment rounds into UK fintech companies in 2022 Largest investment rounds into global fintech companies in 2022
  • 8. Source: CBInsights 2022 Fintech is maturing, with many sub verticals
  • 9. Source: RoseCut, Nutmeg, Minted, 2023 Digital Wealth
  • 10. Source: Monzo, Revolut & Wise 2023 Digital Banking
  • 11. Source: GoCardless & Checkout.com 2023 Payment processing
  • 12. Source: Yapily & Plaid 2023 Open Banking & embedded finance
  • 13. Source: Fluency & Blockchain.com 2023 Central Bank Digital Currencies & Digital Securities
  • 14. Source: SumUp & Paddle 2023 Payment and infrastructure
  • 15. Source: Onfido, Comply Advantage and Remote 2023 Regulation and compliance Tech (RegTech)
  • 16. Source: Zilch & Klarna 2023 Buy now, pay later
  • 17. Source: Many Pets & Tractable 2023 Digital Insurance £357M raised
  • 18. • Expect an increase in M&A activity • Lots of dry powder waiting to back the next wave of start-ups • From Open Banking to Embedded & Seamless Finance • AI and ML are being used to improve fraud detection, personalise customer experience and automate processes • FinTech maturing fast in some markets, with multiple sub verticals • B2B investment is outpacing B2C investment • Collaboration between FinTechs and traditional financial institutions is increasing, bridging the gap • Reg Tech is a fast growing trend, helping financial institutions comply with regulations inc. automated reporting, ID verification & anti-laundering compliance Conclusions
  • 20. The UK tech start-up sector has grown 16x in the last decade Source: Tech Nation, Year in Review 2023