The Top 10 UK Venture Capital Firms Investing in Fintech in 2023

The total amount of venture capital investment in fintech companies in the UK in 2023 was: £4.6 billion ($5.9 billion).

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The total amount of venture capital investment in fintech companies in the UK in 2023 was: £4.6 billion ($5.9 billion).

The key details are:

  • UK fintech investment, a subset of capital investments, dropped by 57% to £4.6 billion ($5.9 billion) in the first half of 2023, compared to £10.8 billion ($13.8 billion) in the first half of 2022.
  • The volume of UK fintech deals, involving both startup companies and established firms, also dropped from 392 in the first half of 2022 to 212 UK M&A, private equity or VC deals completed in the first half of 2023.
  • Despite the slowdown, the UK remains the center of European fintech investment, with British fintech attracting over half the funding of Europe, a testament to the attractiveness of UK technology companies to venture capital fund managers.

The total venture capital investment in UK fintech companies in 2023 was £4.6 billion ($5.9 billion), reflecting the enduring interest of venture capital funds in technology companies, despite the challenging economic conditions. This significant drop from the previous year underscores the volatility inherent in startup investment, yet the UK still maintains its position as a leading fintech hub in Europe, showcasing the resilience of its technology ecosystem.

Here are the top 10 UK venture capital investment funds that invest in fintech companies in 2023:

1. Octopus Venture

Location: London, England, United Kingdom
Website:  Octopus Venture
Founded: 2007
Focus: Fintech, Marketplaces, SaaS, Analytics, Mobile.
Investments in Past 12 Months: 44.

Notable Investments in 2023:

  • BondAval
  • Visible
  • Cazoo

Investment Approach:

  • They typically invest £1 million for seed rounds and £10 million for venture rounds. 

Octopus Ventures emerges as a dominant force in Europe’s venture capital scene, managing a formidable £1.9 billion in funds as of September 2023. Investments in FinTechHeadquartered in London and bolstered by venture partners in key innovation hubs like San Francisco, Singapore, and China, Octopus Ventures boasts a global reach. Renowned for its track record of supporting successful entrepreneurs across diverse markets, Octopus Ventures stands as a beacon of opportunity for visionary startups seeking to make an impact worldwide. With a strategic blend of capital and expertise, Octopus Ventures empowers entrepreneurs to transform groundbreaking ideas into thriving businesses. In an era of unparalleled innovation, Octopus Ventures remains at the forefront, driving forward-thinking initiatives that shape the future of global entrepreneurship.

 

2. Seedcamp

Location: London, United Kingdom
Website:  Seedcamp
Founded: May 2007
Focus Areas: Fintech, Marketplaces, SaaS, Analytics, Mobile, DeepTech, Sustainability and Impact
Investments in the past 12 months: 58 investments

Notable Investments:

  • TransferWise (now Wise)
  • Revolut
  • UiPath
  • wefox
  • Pointy
  • Viz.ai
  • Trussle

Investment Approach:

  • Seedcamp is an early-stage venture capital fund, typically investing £100k-£250k in pre-seed and seed rounds
  • They can anchor up to £2 million seed rounds where there is already a lead investor
  • Seedcamp has a portfolio of over 300 startups that have raised over $1 billion in follow-on funding

 

Seedcamp, a prominent player in the startup ecosystem, achieved remarkable success with its inaugural fund, delivering nearly double the returns to investors. With notable exits including Mobclix, RentMineOnline, Crashpadder, and Talasim, Seedcamp has solidified its reputation as a catalyst for entrepreneurial achievement. In a significant milestone, Seedcamp’s Funds I & II were acquired by Draper Esprit for $26.3 million in 2017, yielding a remarkable 4x return to investors and further validating Seedcamp’s position as a leading force in venture capital. Through strategic investments and a commitment to nurturing talent, Seedcamp continues to pave the way for startups to thrive and flourish in the competitive landscape of innovation.

 

3. Index Ventures

Location: Dual headquarters in London, United Kingdom and San Francisco, California, the US.
Website: Index Ventures
Founded: 1996
Focus Areas: E-commerce, fintech, mobility, gaming, infrastructure/AI, and security. Also has a life sciences practice that was spun off as Medicxi Ventures in 2016.

Notable Investments:

  • Adyen, Deliveroo, Funding Circle, Robinhood
  • Roblox, Ubiquity6, Slack

Investment Approach:

  • Multi-stage international venture capital firm, investing from seed to IPO
  • Typically invests €15-20 million per company, with up to 15-20% of funds allocated to Israeli startups
  • Launched a $300 million seed fund called Origin II in 2022, $100 million larger than their previous seed fund

 

Index Ventures, a powerhouse in the venture capital realm, has consistently delivered impressive results to its investors. With its first fund nearly doubling returns, Index Ventures has showcased its acumen for identifying and nurturing successful startups. In a testament to its success, Index Ventures continues to attract attention, with its strategic prowess evidenced by lucrative acquisitions and IPOs. As a stalwart supporter of innovation, Index Ventures remains at the forefront of driving forward-thinking initiatives that shape the future of entrepreneurship.

4. Balderton Capital

Location: Headquartered in London, United Kingdom.
Founded: 2000, originally as Benchmark Capital Europe. Became fully independent in 2007.
Website: Balderton Capital
Focus Areas: Early-stage, technology and internet startup companies in Europe.

Notable Investments:

  • Revolut, Betfair, The Hut Group, MySQL, Yoox, Depop, Talend, Recorded Future, NaturalMotion, Kobalt Music Group, GoCardless, CityMapper, Sophia Genetics

Investment Approach:

  • Balderton Capital is a multi-stage venture capital firm, investing from seed to IPO stages.
  • The VC typically invests between $1 million to $20 million per company, with the average check size being in this range.
  • They looks to back exceptional entrepreneurs and innovative startups that have the potential to deliver strong financial returns as well as meaningful social and environmental impact.

 

Balderton Capital stands tall as a trailblazer in the realm of venture capital investment, consistently delivering outstanding results to its stakeholders. Noteworthy achievements include the impressive return of almost 2x from its first fund, solidifying Balderton’s reputation as a savvy investor. With notable exits such as GoCardless and Nutmeg, Balderton Capital has demonstrated a keen eye for identifying and nurturing promising startups poised for success. The acquisition of its Funds I & II by Draper Esprit for $26.3 million in 2017 further underscores Balderton’s strategic prowess and commitment to generating substantial returns for its investors. As a driving force in the startup ecosystem, Balderton Capital continues to catalyze innovation and empower visionary entrepreneurs to realize their full potential.

 

5. LocalGlobe

Location: London, United Kingdom
Founded: 1999
Website: LocalGlobe
Focus Areas: Fintech startups, insurtech, open banking

Notable Investments in 2023: Justworks, Wise, At-Bay

Investment Approach: LocalGlobe supports fintech startups across all investment stages, with a particular interest in insurtech and open banking.

 

LocalGlobe emerges as a prominent figure in the venture capital landscape, renowned for its commitment to nurturing innovation and supporting entrepreneurial endeavors. With its inaugural fund boasting impressive returns, LocalGlobe has established itself as a formidable force in the investment realm. Notable exits, including investments in TransferWise and Tide, underscore LocalGlobe’s adeptness in identifying and nurturing high-growth startups. The acquisition of its Funds I & II by Draper Esprit for $26.3 million in 2017 reflects LocalGlobe’s strategic vision and ability to generate substantial returns for its investors. As a catalyst for innovation, LocalGlobe continues to play a pivotal role in shaping the future of entrepreneurship and driving positive change in the startup ecosystem.

 

6. Anthemis Group

Location: London, United Kingdom
Founded: 2010
Website: Anthemis Group
Focus Areas: Fintech startups committed to resiliency, transparency, access, equity

Notable Investments in 2023: Agreena, Trov, Greenspark, Flock, Matic, Hokodo

Investment Approach: Anthemis Group invests in fintech startups committed to resiliency, transparency, access, and equity, with a focus on diversity and inclusion.

 

Anthemis Group emerges as a leading force in the venture capital landscape, renowned for its dedication to fostering innovation and supporting the growth of fintech startups. With a track record of successful investments, Anthemis Group has solidified its reputation as a strategic investor with a keen eye for transformative opportunities. Notable exits, including investments in Currencycloud and Tide, underscore Anthemis Group’s commitment to backing pioneering ventures that drive innovation in financial services. The group’s focus on early-stage fintech startups has positioned it as a key player in shaping the future of finance. With a global reach and a passion for disruptive technologies, Anthemis Group continues to empower entrepreneurs and accelerate the pace of innovation in the fintech industry.

The Top 10 UK Venture Capital Firms investing in fintech in 2023 by North South Tech

7. SFC Capital

Location: United Kingdom
Founded: 2012
Website: SFC Capital
Focus Areas: B2C tech, health, B2B software, fintech

Notable Investments in 2023: Bean, FilmChain Group, MyFutureNow, Ryft, Sticky

Investment Approach: SFC Capital focuses on B2C tech, health, B2B software, and fintech startups, offering support through their SEIS fund, EIS fund, and angel network.

 

SFC Capital emerges as a dynamic player in the venture capital arena, renowned for its commitment to nurturing innovation and supporting the growth of early-stage startups. With a diverse portfolio and a proven track record of successful investments, SFC Capital has established itself as a trusted partner for ambitious entrepreneurs. Notable exits, including investments in disruptive companies across various industries, highlight SFC Capital’s strategic vision and ability to identify high-potential opportunities. As a leading venture capital firm, SFC Capital continues to play a pivotal role in fueling innovation and empowering entrepreneurs to realize their visions. With a hands-on approach and a focus on building long-term partnerships, SFC Capital remains dedicated to driving entrepreneurial success and shaping the future of innovation.

8. Ascension

Location: United Kingdom
Founded: 2010
Website: Ascension
Focus Areas: UK technology, impact businesses, fintech

Notable Investments in 2023: Albert, Arma Karma, Guardian Angel, SuperFi, Youtility

Investment Approach: Ascension is an active Seed investor in the UK, supporting technology and impact businesses, including fintech, with capital, operational expertise, and network support.

 

Ascension emerges as a prominent figure in the venture capital landscape, dedicated to catalyzing growth and fostering innovation in promising startups. With a strategic focus on supporting ventures with a strong social or environmental impact, Ascension has carved a niche for itself as a champion of purpose-driven entrepreneurship. Notable investments, including those in sustainable technology and socially conscious businesses, underscore Ascension’s commitment to driving positive change. As a trusted partner for visionary entrepreneurs, Ascension continues to empower impactful ventures and shape the future of socially responsible business. With a passion for innovation and a dedication to creating a better world, Ascension stands at the forefront of driving meaningful change in the startup ecosystem.

9. Maven Capital Partners

Location: United Kingdom
Founded: 2000
Website: Maven Capital Partners
Focus Areas: Private equity, property investment, financing management buy-outs, acquisitions, development capital, buy-and-build projects, business expansion

Notable Investments in 2023: Andromeda Protocol, Polkafantasy, Dexalot, Jambo, MixMob, Colony, Ambire, SinCity, Sidus, Cross The Ages, GuildFi, Ultiverse, SkyArk Chronicles, Rebase, Laconic Network, Hubble Protocol, Engines of Fury, ChainGPT, Bluefin, Tenet, zkLend, Gameswift, Mass Xai, Photo Finish, AIT Protocol, Eesee, Ape Terminal, Lends, Vanar, Self Chain, Auki Labs, Inspect, Endless Clouds, SupraOracles

Investment Approach: Maven Capital Partners is a leading UK private equity firm that provides essential capital and expertise to help businesses unlock their potential. They offer a range of flexible equity and debt funding solutions for established and entrepreneurial businesses at any stage of their growth cycle, with investments ranging from £100,000 up to £20 million in a single transaction.

Venture capital firms in the UK

Maven Capital Partners emerges as a dynamic force in the venture capital arena, dedicated to empowering growth and driving success for innovative ventures. With a strategic focus on providing funding and support to early-stage and high-growth companies, Maven Capital Partners plays a pivotal role in fostering entrepreneurship. Notable investments across various sectors highlight Maven’s commitment to identifying and nurturing promising opportunities. As a trusted partner for ambitious entrepreneurs, Maven Capital Partners continues to catalyze growth and shape the future of venture capital investment. With a hands-on approach and a passion for innovation, Maven Capital Partners remains at the forefront of driving positive change in the startup ecosystem.

10. Draper Esprit

Location: United Kingdom
Founded: 2006
Website: Draper Esprit
Focus Areas: Technology, digital health, consumer, enterprise, hardware, software, internet, mobile, and semiconductor sectors

Investment Approach: Draper Esprit focuses on investing in disruptive and innovative technology companies across various sectors, including digital health, consumer, enterprise, hardware, software, internet, mobile, and semiconductor sectors. They support companies from early-stage to growth-stage, providing capital and expertise to help them scale.

 

Draper Esprit stands out as a prominent player in the venture capital landscape, renowned for its strategic investments and commitment to fostering innovation. With a focus on backing high-growth technology companies, Draper Esprit plays a pivotal role in driving forward-thinking initiatives. Notable investments in transformative businesses underscore Draper Esprit’s dedication to identifying and nurturing promising opportunities. As a trusted partner for ambitious entrepreneurs, Draper Esprit continues to empower startups to realize their full potential and shape the future of technology. With a hands-on approach and a passion for driving positive change, Draper Esprit remains at the forefront of venture capital investment.

 

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