Fintech and insurtech scaleups accelerate tech sector’s growth in the UK
Tech Nation, the leading growth platform for UK tech companies, in celebration of UK Fintech Week, today announces the latest companies joining the Future Fifty programme.
Future Fifty is Europe’s leading late-stage growth programme, designed to bring together, empower and accelerate the growth of the most successful tech companies in the UK. Programme alumni include Monzo, Starling Bank, Darktrace, among others. 131 companies have taken part in the programme since its inception, collectively raising $11bn, with 9 companies going on to IPO.
The 22 companies joining the programme are driving the growth of UK tech. Companies hail from across the UK, and from a broad range of tech sub-sectors, including fintech, edtech, healthtech and e-commerce. On average, new companies in this year’s cohort are growing by more than 1,029% year-on-year, a 140% increase on last year, with average annual revenues at a staggering £23m, 305% higher than in 2020.
Rt Hon Rishi Sunak MP, Chancellor of the Exchequer, said: “The UK tech’s sector is set to be the cornerstone of UK economic growth after the pandemic, and the companies in this year’s Future Fifty cohort are a shining example of our nation’s innovation, entrepreneurship and resilience. Nurturing the growth of these scaling companies at such a critical stage is a national priority, as these are the businesses who are already shaping our future both locally and globally.”
More than a third of new companies joining Future Fifty are fintechs and insurtechs (8 out of 22), the prevalence of which suggests that these sectors are fuelling the growth of UK tech and driving economic recovery. PrimaryBid, Liberis, Monese, Moneybox, Tide, Bought By Many, Marshmallow and Tractable are the 8 fintechs and insurtechs joining the programme this year, who have raised $769mn between them to date.
Data suggests fintechs are on track for strong growth this year. While investment into fintech dipped in 2020, to $4.5bn, in the first quarter of 2021 UK fintech’s have already raised $6bn, more than the whole of 2020, and matching record investment seen in 2019. Fintech adoption remains rapidly on the rise in the UK, with the recent growth of fintech scaleups accelerated by more traditional companies’ embracing new technologies. As set out in the Tech Nation Report 2021, the UK’s leading annual report on the state of tech, the UK is Europe’s biggest fintech hub by employees and investment, second only to the US globally.
The strong performance of the fintech sector is reflected in a strong first quarter of 2021 for the UK tech sector overall. 2021 has seen an all time quarterly record for VC investment, attracting over $11bn of investment, with 7 tech unicorns created including UK fintechs Starling Bank and Lendable.
Gerard Grech, chief executive, Tech Nation, commented: “The UK’s fintech sector is a powerhouse, and the continued innovation, ambition and growth of our nation’s UK tech scaleups never fail to inspire. I am delighted to be working with some of the fastest-growing fintech companies in the country, who are driving the rebuilding of our economy after what has undoubtedly been a challenging year for us all. I am confident that in 2021, we will see further growth in the fintech sector – and continue the rapid growth we’ve seen so far in 2021, with an all time quarterly record for VC investment into UK tech companies of over $11bn.”
Ana Lucia Buckman, Future Fifty Lead, Tech Nation, commented: “Despite the challenging year for UK businesses, and the rigorous selection process of the Future Fifty programme, the companies in this year’s cohort have overcome tremendous obstacles and achieved unprecedented levels of growth. They have demonstrated their position as UK tech leaders and I would like to congratulate them for having a real impact on the rapid growth of the UK economy and the world at large.”
