UK Fintech Funding in H1 2026: Second Globally, but at a Decade Low
UK fintechs raised $1.8 billion of venture capital across 181 deals in the first half of 2026, according to Innovate Finance, while KPMG's wider measure fell to £1.8 billion, its lowest since 2016.
By Entrepreneur Group · Published · Updated
UK fintech companies raised $1.8 billion of venture capital across 181 deals in the first half of 2026, according to Innovate Finance. That kept the UK second in the world behind the US and first in Europe. A separate KPMG analysis, which also counts private equity and M&A, found UK fintech investment fell to £1.8 billion across 205 deals, the lowest level since its records began in 2016.
The two figures measure different things, so they should not be compared directly. Read together, they describe a UK fintech market that is holding its position internationally while raising much less money than in recent years.
What Innovate Finance found
Innovate Finance's figures, reported by IT Brief UK, cover venture capital equity only and exclude debt. Using PitchBook and Beauhurst data, it found:
- UK fintech investment of $1.8 billion across 181 deals, down 5%, while global fintech investment fell 12%.
- Global fintech investment of $28 billion, down from $32.5 billion in the previous half.
- The US led with $17.2 billion. India was third with $1.5 billion and France fourth with $1.3 billion.
- Ebury's $203 million round was the largest UK deal.
For the first time the report also looked at AI investment overall, ranking the UK third in the world behind the US and China.
What KPMG found
KPMG's Pulse of Fintech counts venture capital, private equity and M&A together. On that basis:
- UK fintech investment was £1.8 billion in H1 2026, down about two-thirds from £5.0 billion in H1 2025.
- Deal numbers fell to 205 from 281 a year earlier, the lowest in a decade.
- The largest UK deals were Ebury (£543 million private equity investment), Paymentology (£129 million) and 9fin (£124 million).
- AI-related fintech investment reached £445 million across 79 deals, 25% of the UK total, up from 16% a year earlier.
- The UK remained Europe's largest fintech market and second globally by deal count, but its share of EMEA investment fell to 22%.
KPMG's head of fintech, Hannah Dobson, said the second half of the year "is likely to remain challenging for fundraising".
What it means for fintech founders
This section is editorial guidance, not investment advice.
- Expect selective investors. Fewer deals means investors can be choosy. Show revenue quality, regulatory readiness and a clear path to profitability.
- AI is attracting a larger share. A quarter of UK fintech investment went to AI-related companies in KPMG's data. If AI is central to your product, explain exactly what it does. If it is not, do not force it into your pitch.
- Check which number you quote. If you cite market data in a deck, name the source and what it measures. Investors will notice if a figure mixes VC-only and all-deal totals.
Frequently asked questions
How much did UK fintech raise in the first half of 2026?
Innovate Finance reports $1.8 billion of venture capital across 181 deals. KPMG, which also counts private equity and M&A, reports £1.8 billion across 205 deals, the lowest since 2016.
Is the UK still a leading fintech market?
Yes. Innovate Finance ranks the UK second globally and first in Europe for fintech venture investment in H1 2026, and KPMG ranks it second globally by deal count.
What was the biggest UK fintech deal in H1 2026?
Ebury was the largest UK fintech deal in both datasets. Innovate Finance records a $203 million round, and KPMG records a £543 million private equity investment.
Sources
- KPMG UK: UK fintech funding drops to a decade low (24 August 2026) (reviewed 27 October 2026)
- IT Brief UK: UK fintech raises USD $1.8 billion to keep second spot (Innovate Finance H1 2026 data, 10 July 2026) (reviewed 27 October 2026)