The State of Fintech Funding in 2023
Big investors may now be turning to riskier assets, but 2023 was a year of heightened risk aversion, and companies seeking venture capital (VC) funding had an uphill journey. According to Pitchbook’s annual European Venture report, dealmaking fell significantly last year in Europe, with just €57bn invested, representing a year-on-year decline of 45.6%. The statistics are even bleaker for the UK fintech sector, which experienced a 63% decline in funding to $4.2bn in 2023. The number of $100m-plus funding rounds also dropped from 25 in 2022 to just nine in 2023.
The fintech industry has faced additional challenges due to rising interest rates, inflation, and the aftermath of the collapse of FTX and Binance’s $4.3 billion settlement with the US Department of Justice. However, despite these obstacles, the UK fintech start-up ecosystem remains strong, ranking second in the world after the US. The UK is home to over 13,000 companies in the fintech space, accounting for nearly 10% of all fintech companies worldwide.
5 Fintechs to Watch in 2024
While funding has decreased overall, there are still promising fintech companies making waves in the industry. Here are five fintechs to watch in 2024:
APEXX is a payments orchestration platform that raised $25m in Series B funding in 2023. In addition to the funding, APEXX joined forces with Klarna to expand the latter’s flexible, interest-free payment choices to global merchants. APEXX also struck a deal with US-based travel company Internova to provide a simple and secure payment process for travellers. With plans for further expansion in North America, APEXX is already active in over 50 markets.
LemFi, formerly known as Lemonade Finance, raised $33m in Series A funding. The company’s mobile application offers payment services, global accounts, and international money transfers, primarily serving migrants moving abroad. LemFi recently partnered with ClearBank and reported a significant increase in payment volumes.
Liberis has been providing accessible and responsible finance to over 60,000 small businesses across three continents since 2007. The company announced $112 million debt financing, which will be used to deploy advanced AI and machine learning algorithms to provide personalized products for SMEs. Liberis has accumulated $700m in funding to date.
Moniepoint offers an all-in-one payments, banking, and operation platform for businesses and has branches in multiple countries. The company focuses on providing financial products to underbanked communities and recently launched a personal banking app to reach even more customers. Moniepoint plans to expand further into the Kenyan market by acquiring Nairobi-based Kopo Kopo.
Volt is a London-based fintech company that specializes in lightning-fast, real-time payment solutions. With operations in 25 territories, Volt raised $60m in a Series B round and plans to expand into APAC and the Americas. The funding will also support product development in existing markets.
If you’re seeking new opportunities in the fintech industry, AltFi Job Board offers various roles, including Engineering Manager, Customer Experience Associate, and Sales Specialist.