British FinTechs Felt the Love in 2021 with $37.3B in Funding

Last year was good to British FinTechs, which were backed with $37.3 billion in funding, up 617% over 2020, according to a biannual report from KPMG.

Firms received an extra leg up from the London Stock Exchange Group’s $14.8 billion acquisition of Refinitiv. Additionally, startup valuations for FinTechs escalated throughout the industry, with 601 completed deals in 2021 — up over 25% from the prior year.

Half of the top 10 FinTech deals in Europe, the Middle East and Africa were based in the U.K.

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Across the globe, funding across mergers and acquisitions, private equity and venture capital in FinTechs increased roughly 70%, with a record 5,684 deals last year that totaled over $210 billion, bolstered by investor enthusiasm for cryptocurrency and blockchain technology.

Europe, the Middle East and Africa (EMEA) got $77 billion of that total funding, including a record $31.1 billion in venture capital (VC) funding. The Nordic region was backed with $18.5 billion and Germany received $5.4 billion.

The Asia-Pacific region was funded with $27.5 billion in 2021, almost double the $14.7 billion in 2020.

Payments companies in all parts of the world got backing of $51.7 billion, with a record $30 billion invested in blockchain and crypto. Cybersecurity got $4.9 billion in funding and wealth products $1.6 billion, per the report.

Read more: Platforms Were Payments’ Hot 2021 IPO Theme — Will Profits Follow?

“2021 has been an incredibly strong year for the FinTech market globally, with the number of deals soaring to record highs across the board,” said Anton Ruddenklau, global FinTech leader at KPMG International. “We’re seeing an incredible amount of interest in all manner of FintTch companies, with record funding in areas like blockchain and crypto, cybersecurity and wealthtech.

“While payments remain a significant driver of FinTech activity, the sector is broadening every day.”

FinTech investment in the Americas hit $105 billion in 2021, with a record $64.5 billion in VC funding. The U.S. received $88 billion in total, with $52.7 billion in VC funding, the report indicated.