Despite UK financial technology companies receiving £8.6bn investment in 2021, there is still an important and rising gap between investments in fintechs, with women-led fintechs receiving fewer investments.
Indeed, a recent study by Innovate Finance showed that investment had increased by 207% compared to 2020, with the UK funds being invested through 713 deals. The US was still at the top of investments with $46bn, followed by the UK at $11.6bn, India, Germany, and Brazil.
The rise in funding levels shows the world-class innovation and ingenuity of the UK, which is driving forward and transforming financial services. However, it is still hard for female fintech founders to gain a fair share of the funds being invested, as only 9% went to female fintech founders. Even though this was three times higher than 2020 in terms of value, it is about the same proportion as 2020 and less than in 2019.
Hence, there is a crucial need to make the issue more visible and to make sure that female founders are given the same opportunities.