UK fintech investment falls 56% to $17.39 billion in 2022, with a tale of two halves

593 UK M&A, PE and VC fintech deals completed, down from 724 in 2021

593 UK M&A, PE and VC fintech deals completed, down from 724 in 2021

  • 593 UK M&A, PE and VC fintech deals completed, down from 724 in 2021
  • UK remains a global leader in the fintech space
  • Global fintech market attracts U$164.1 billion across 6,006 deals in 2022 – a strong showing despite falling from the high of US$238.9 billion seen in 2021

Total UK fintech investment hit $17.39billion in 2022, down from $39.14 in 2021, according to the Pulse of Fintech H2’22 – a bi-annual report highlighting global investment trends published by KPMG today.

The sharp drop-off in fintech investment between H1’22 and H2’22 highlights the rapidly shifting market conditions much more clearly, as a combination of higher interest rates and inflation alongside downward pressure on valuations dampen investor appetite.

A total of 593 UK M&A, PE and VC fintech deals were completed in the UK in 2022, down from 724 in 2021. Despite the fall in the total number of UK deals, the country remains the centre of European fintech investment with British fintechs attracting more funding than their counterparts in the rest of EMEA combined.

The majority of deals (312) were Venture Capital (VC) deals. Payment deals attracted the most funding among fintech subsectors in the UK, accounting for $3.6 billion investment in 2022, while cryptocurrency remains a significant driver of activity, despite the recent turbulence in the market, including large VC raises by UK-based ($490 million).

Karim Haji, UK and EMA head of financial services at KPMG, said: “Despite the drop in both value and volume, it was a strong year for the UK fintech industry. The UK is a major global player, with investment in UK fintech only behind that of the US and Australia. 

“It’s a tale of two halves however, and H1’22 saw significantly more investment and deals than H2’22. The variance highlights the shift in investor sentiment in the face of increasing geopolictical challenges leading to the lack of IPO exits, the downward pressure on valuations, and market turbulence.”

Total global fintech investment across M&A, PE, and VC fell to US$164.1 billion across 6,006 deals in 2022, after reaching a record US$238.9 billion across 7,321 deals in 2021. Regtech, in particular, saw significant investment in 2022, while seed-stage deals received excellent attention from investors after years of late-stage deals getting priority.

While results were substantially lower compared to 2021’s peak highs, 2022 was the second best year for deal volume. The first half of the year saw a stronger performance, with $11.8 billion investment and 365 deals in H1, compared with $5.6 billion investment and 228 deals in the second half of 2022.

The investment total was strengthened by the size of many of the deals, which included the $1.8 billion Interactive Investor deal. Five out of the ten largest fintech deals in the EMEA region were completed in the UK.

Anton Ruddenklau, Global Fintech Leader, KPMG International, added: “We’re seeing an incredible amount of interest in all manner of fintech companies, with record funding in areas like blockchain and crypto, cybersecurity, and wealthtech. While payments remains a significant driver of fintech activity globally, the sector is broadening every day.”

Connect with us

Save, Curate and Share

Save what resonates, curate a library of information, and share content with your network of contacts.

2022 Key Global Highlights

  • Global fintech investment was US$164.1 billion across 6,006 deals in 2022 – down from the record high US$238.9 billion across 7,321 deals in 2021.
  • Payments remained the strongest area of fintech investment globally in 2022, with US$53.1 billion in investment compared to US$57.1 billion in 2021; Regtech was the only sector to buck the downward trend, with investment in the space rising from US$11.8 billion in 2021 to a record US$18.6 billion in 2022.
  • Investment in crypto and blockchain fell from US$30 billion in 2021 to US$23.1 billion in 2022. The decline in the second half of the year was particularly sharp—as scrutiny in the space picked up significantly in the wake of the May Terra (Luna) crash and the November bankruptcy of FTX.
  • Global M&A deal value dropped from US$105.1 billion in 2021 to US$73.9 billion in 2022; global VC investment declined from US$122.9 billion to US$80.5 billion year-over-year. PE growth investment dropped less sharply, falling from nearly US$11 billion in 2021 to US$9.7 billion in 2022.
  • Corporate-participating VC investment globally fell from US$62.8 billion in 2021 to US$39.6 billion in 2022.
  • The median deal size rose for both angel & seed-stage deals (from US$1.8 million in 2021 to US$2.4 million in 2022) and early-stage VC deals (from US$5.75 million to US$6 million)—while falling for later-stage VC deals (from US$15 million to US$13.9 million).



Notes to editors:


UK deal values by year




























Follow us on twitter: @kpmguk


For further information please contact:

KPMG Media Relations

Tel: +44 20 7694 8773


Christina Bridge and Helen Jackson

M: +44 7789 504905 / +44 7901 115649


Gerard Swinley

M: +44 7510 375540



KPMG LLP, a UK limited liability partnership, operates from 20 offices across the UK with approximately 17,000 partners and staff. The UK firm recorded a revenue of £2.72 billion in the year ended 30 September 2022.

KPMG is a global organization of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 143 countries and territories with more than 265,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.