Fewer UK FinTechs founded in last 2 yrs than in 2015 to 2018

Fewer FinTechs were founded in the UK in the last two years than in 2015 to 2018, according to new research from Claurus Investments.

Claurus surveyed over 1100 FinTech companies founded in the UK since 2009 that had received at least one funding round by 2020.

The investment firm’s research found that the annual number of new FinTechs founded in 2019 and 2020 was less than half that of the period between 2015 to 2018.

The research also found that pre-season A FinTech funding peaked in the UK in 2018 at £265 million.

Profitability has also been elusive for UK FinTechs according to research. The combined revenues for the businesses surveyed hit £5 billion in 2020, but combined losses after tax were around £2.2 billion.

Less than five per cent of the cohort of firms surveyed by Claurus were profitable, and 80 per cent increased their losses in their latest reports.

Investors however have generally profited from investing in UK FinTechs; the report found the firms surveyed produced an annual rate of return of around 75 per cent to 80 per cent.

Many UK FinTech are also showing relatively good longevity according to the research, 60 per cent of companies surveyed that are at least three years old are still in business and have received funding in the last three years.

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