The London Stock Exchange has agreed to review declining growth and investments into UK fintech startups. Announced as part of Fintech Week London, the review will bring together key industry partners, regulators, investors, and industry companies to better understand the trajectory of the industry and ensure it thrives.
Fintech has been one of the most heavily invested in sectors of UK tech. 2021 saw record-high funding. However, according to Fintech Week London, new industry analysis has revealed a sharp decline in 2022.
Founding partners that have already signed up to support the funding review include the London Stock Exchange, the Fintech Times, and industry specialist PR firm SkyParlour, with more expected to follow.
Fintech week CEO’s Statements:
said Raf De Kimpe, CEO of Fintech Week London:
” Of the many topical issues affecting the international fintech space, the recent predicted downturn in VC funding is one that affects the entire ecosystem,”
Additionally, De Kimpe followed with:
That fintechs at all stages would be affected by a slowdown of investments into the industry and that this would have a “knock-on effect on tech development, talent acquisition and retention, and ultimately the flow of innovative financial solutions to the end-user.”
Dr Kimpe added that the group is:
“uniquely placed to launch an independent review into how the fintech industry” given it’s made up of the UK fintech community itself…We want to know how the industry can move away from hyper-valuations and unsustainable business models to refocus on financial products and services that improve the world in real-time.”
A recurring feature of last year was huge valuations for firms in Europe, leading to some concern that sustaining that level of expectation and growth would be impossible.
A Prime example is, he buy now pay now later firm Klarna. In 2022, they went from a record $46bn valuation last year to seeking a valuation of around $6bn now.
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