The fund aims to undertake four to eight investments per year, with investments between £10m and £100m
UK FinTech Growth Partners has announced a fund to focus on supporting fintechs as they scale.
The initiative is backed by the likes Barclays, Mastercard, NatWest and the London Stock Exchange Group.
The fund will invest in UK fintechs predominantly between series B and pre-IPO. It aims to undertake four to eight investments per year, with investments between £10m and £100m.
Alongside the capital, the fintech growth fund will support its portfolio companies with its experience in fintech. The UK FinTech Growth Partners team includes former executives from Morgan Stanley, BlackRock, HSBC, and FinTech Alliance.
The idea for the fund grew out of the Kalifa Review, an independent report on the UK fintech sector. It outlined a five-point plan to help the UK retain its status as a global fintech leader in financial services through fintech. It also identified an annual funding gap for growth stage fintechs at £2b. And recommended a £1b growth fund to fill this space.
Phil Vidler, managing partner at UK FinTech Growth Partners, agrees that despite the UK being at the forefront of fintech innovation, there is still a growth funding gap.
Vidler said: “The FinTech Growth Fund will address the lack of available growth capital by providing a first of its kind domestic, growth-stage, fintech focused venture capital fund.
“Our aim is to not only provide the capital needed for founders to scale their businesses, but to also engage with stakeholders across the nation to support the wider ecosystem. In doing so, we believe we can ensure the UK remains a global leader in FinTech.”
Ron Kalifa, author of the Kalifa Review, welcomed the fund. He said: “The Fund represents another key building block in the support ecosystem for growth stage UK fintech businesses. This is an important step forward towards ensuring the UK retains its leadership role in fintech.”
Dominic Johnson, minister of state, department for business and trade for the UK, commented: “UK fintech remains one of this country’s crown jewels, casting a shining light to global investors that attracted $12.5b of inward investment in 2022. Second only to the US and larger than the next 13 European markets combined.”