UK fintech fundraisings decline in the first quarter

THE NUMBER of fintech equity fundraisings fell during the first quarter of 2018 but there is still significant interest in the sector, analysts say.

Beauhurst, which tracks equity investment in non-listed high-growth UK companies, revealed there were just 34 fintech deals in the first three months of 2018, down from 40 at the end of 2017 and below the 38 recorded a year before.

While deals for fintech firms were down, there was increased interest in blockchain and insurtech businesses, both of which saw an increase in equity investment transactions.

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There were seven blockchain deals, up from two in the fourth quarter of 2017, while the number of insuretech deals grew from six to eight over the same period.

“Both of these verticals are closely related to fintech, which despite a fall in deal numbers from last quarter, continues to draw in a significant number of investments,” Beauhurst said in a market update released on Wednesday.

“We suspect these two sectors might be 2018’s most exciting areas to keep an eye on.”

Beauhurst also warned that the outlook wasn’t as positive for artificial intelligence in 2018, which has gradually seen investment fall to 2015 levels.

Meanwhile, the report showed the amount raised through crowdfunding fell to £53.8m – or 83 deals – in the first quarter of 2018, from £68.8m over 112 deals at the end of 2017. It was still up annually though from £39.9m, representing 78 deals.

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