In a recent report released by HSBC Innovation Banking and Dealroom, the UK’s fintech sector surged back to the forefront of startup funding, securing a whopping $1.4 billion (£1.1bn) raised over 73 rounds in Q1 2024. 

The report also indicated stabilisation in VC investment levels in the UK, with startups raising a total of $3.9bn (£3.1bn) in Q1. To put this in perspective, the amount raised by UK startups in this time is nearly as much as Germany and France combined. 

While London remains the top city for capital raised, funding has been flowing into other innovation centres across the country, with Edinburgh emerging as one of the fastest-growing hubs.

According to the report, Edinburgh has experienced a 406% increase in VC investment since 2023, with the largest funding round being Build a Rocket Boy’s Series D, valued at $110 million (£86.7m~). 

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Early-stage investments in general also surpassed previous quarters, reaching $1bn (£800m), while late-stage funding remained relatively low in number but amounted to $1.4bn (£1.1bn). However, the report also shows that a substantial amount of VC investment comes from overseas with just 36% being domestic and a whopping 39% being from the US. 

“This data reflects a busy start to the year for the UK innovation ecosystem – from growth in investment in established and emerging areas like fintech and quantum computing to expansion of regional tech hubs across the length and breadth the country, there is much to celebrate,” said Simon Bumfrey, head of technology and life sciences at HSBC Innovation Banking UK.

“We remain optimistic and excited about UK innovation in 2024 and are committed to supporting and partnering with innovators, investors and the broader ecosystem.”