The UK Fintech Growth Partners has launched its Growth Stage Fintech Fund, in response to the Kalifa Review of UK Fintech. The review highlighted an annual funding shortfall of £2 billion for UK Fintechs, prompting the establishment of a £1 billion fund to stimulate investment and support the growth of the ecosystem. The Fund will focus on investing in private Fintech ventures, primarily from Series B to pre-IPO, and aims to make four to eight investments per year ranging from £10 million to £100 million. The Fund has already secured backing from industry leaders such as Barclays, NatWest, Mastercard, London Stock Exchange Group, and Peel Hunt, and will provide not only capital but also strategic support to portfolio firms on their path to success.
UK Fintech Growth Fund Launches In The UK
Fund Launched to Address Annual Growth Stage Funding Shortfall
The UK Fintech Growth Partners has recently launched its Growth Stage Fintech Fund. The launch comes in response to the findings of the Kalifa Review of UK Fintech, which highlighted an annual growth stage funding shortfall of around £2 billion for UK Fintechs. In order to address this gap and support the growth of the industry, a £1 billion fund has been established. The fund aims to act as a catalyst for investment and help develop the UK’s fintech ecosystem.
Partners of the Fund
The fund has garnered the support of several major financial institutions, including Barclays, NatWest, Mastercard, London Stock Exchange Group, and Peel Hunt. These partners bring their expertise and resources to the table, further strengthening the fund’s ability to support and invest in private fintech ventures.
Leadership of the Fund Comments on the Launch
The leadership of the fund, including Ron Kalifa, author of the Kalifa Review, and Lord Dominic Johnson CBE, Minister of State in the Department for Business and Trade, have commented on the launch. They express their enthusiasm and belief that the fund will play a crucial role in supporting the growth of the UK fintech industry. Lord Philip Hammond, the chair of the fund, also highlights the importance of fintech in maintaining the UK’s position as a global financial services center.
Expectations for First Investments
The fund is expected to make its first investments in the fourth quarter of 2023. These investments will have a significant impact on the growth of fintech in the UK, providing much-needed funding and support for innovative companies in the sector.
Fund Launched to Address Annual Growth Stage Funding Shortfall
Overview of the Kalifa Review of UK Fintech
The Kalifa Review of UK Fintech highlighted a funding shortfall of £2 billion for UK Fintechs at the growth stage. The review emphasized the importance of addressing this shortfall in order to support the growth and development of the industry.
£1 Billion Fund to Spur Investment and Develop Ecosystem
To address the funding gap identified in the Kalifa Review, a £1 billion fund has been established. The fund aims to spur investment in the UK fintech industry and help develop the ecosystem. By providing much-needed capital to fintech ventures, the fund will enable these companies to scale and succeed.
Importance of Fintech Innovation in the UK
The UK is recognized as a leading fintech hub, and fintech innovation plays a crucial role in the country’s economy. The growth of the fintech industry in the UK has attracted significant investment and contributes to the continued success of the financial services sector. Supporting and boosting fintech innovation is essential for maintaining the UK’s position as a global leader in fintech.
Fund to Invest in Private Fintech Ventures from Series B to Pre-IPO
The fund will primarily focus on investing in private fintech ventures at the growth stage, from Series B to pre-IPO. By providing capital and support to these companies during a critical phase of their development, the fund aims to facilitate their scaling and success. The investments will be made in equity or equity-linked securities, aligning the interests of the fund and the companies it invests in.
Range of Investments and Backing from Major Financial Institutions
The fund has attracted the support and backing of several major financial institutions, including Barclays, NatWest, Mastercard, London Stock Exchange Group, and Peel Hunt. These partners bring their extensive experience and resources to the fund, further enhancing its ability to support and invest in private fintech ventures.
Overview of the Kalifa Review of UK Fintech
Review Highlights Annual Funding Shortfall of £2 Billion
The Kalifa Review of UK Fintech identified a funding shortfall of £2 billion for UK fintech companies at the growth stage. This shortfall hinders the ability of these companies to scale and succeed, potentially limiting the growth of the fintech industry as a whole.
Need for Catalyst to Spur Investment and Support Fintech Growth
In order to address the funding gap identified in the review, a catalyst is required to spur investment in the UK fintech industry and support its growth. The £1 billion fund launched by the UK Fintech Growth Partners is designed to fulfill this role, providing the capital and support needed to drive the growth and success of fintech ventures.
£1 Billion Fund to Spur Investment and Develop Ecosystem
Purpose of Fund to Address Funding Gap and Support Fintech Growth
The primary purpose of the £1 billion fund launched by the UK Fintech Growth Partners is to address the funding gap identified in the Kalifa Review and support the growth of the UK fintech industry. By providing much-needed capital and support to fintech ventures, the fund aims to facilitate their scaling and success, contributing to the overall growth and development of the fintech ecosystem.
Investment in Private Fintech Ventures at Growth Stage
The fund will primarily invest in private fintech ventures at the growth stage. These companies are often in need of additional capital to fuel their expansion and take advantage of market opportunities. By investing in these ventures, the fund aims to provide them with the financial resources they need to grow and succeed.
Range of Investments and Strategic Support for Portfolio Firms
The fund envisions making four to eight investments each year, ranging from £10 million to £100 million. These investments will be made in equity or equity-linked securities, aligning the interests of the fund and the companies it invests in. In addition to providing capital, the fund will also offer strategic support to portfolio firms, leveraging the expertise and resources of its partners to help these companies become successful.
Backing from Major Financial Institutions
The UK Fintech Growth Fund has received the backing of several major financial institutions, including Barclays, NatWest, Mastercard, London Stock Exchange Group, and Peel Hunt. These partners bring their extensive experience and resources to the fund, enhancing its ability to support and invest in fintech ventures.
Importance of Fintech Innovation in the UK
UK as a Top Fintech Hub
The UK is recognized as one of the top fintech hubs in the world. The country’s leading global financial center, coupled with its supportive regulatory environment, has made it an attractive location for fintech companies to establish and grow their businesses.
Role of Fintech in Innovation and Country’s Economy
Fintech innovation plays a crucial role in driving innovation and contributing to the UK’s economy. The growth of the fintech industry in the country has attracted significant investment, created jobs, and fostered technological advancements. Supporting and boosting fintech innovation is vital for maintaining the UK’s position as a global leader in the sector.
Fund to Invest in Private Fintech Ventures from Series B to Pre-IPO
Focus on Scaling Private Fintech Ventures
The fund launched by the UK Fintech Growth Partners aims to focus on scaling private fintech ventures. These companies, typically at the growth stage, are in need of additional funding to expand their operations, reach new markets, and capitalize on growth opportunities.
Investments Ranging from Series B to Pre-IPO
The fund will invest in fintech ventures at various stages of their growth, ranging from Series B to pre-IPO. By providing funding to companies at these critical stages, the fund aims to facilitate their scaling and success, ensuring their long-term growth and contribution to the fintech ecosystem.
Emphasis on Equity or Equity-Linked Securities
The investments made by the fund will primarily be in equity or equity-linked securities. This approach aligns the interests of the fund with the companies it invests in, enabling both parties to benefit from the growth and success of the ventures.
Range of Investments and Backing from Major Financial Institutions
Partners of the Fund
The fund has received backing from several major financial institutions, including Barclays, NatWest, Mastercard, London Stock Exchange Group, and Peel Hunt. These partners bring their extensive experience and resources to the fund, further enhancing its ability to support and invest in fintech ventures.
Backed by Barclays, NatWest, Mastercard, London Stock Exchange Group, and Peel Hunt
The backing of these major financial institutions adds credibility and support to the fund. Their involvement demonstrates the importance and potential of the UK fintech industry, and their resources and expertise will be invaluable in helping the fund to achieve its goals.
Partners of the Fund
Key Partners and Their Backgrounds and Experiences in Fintech and Investments
The fund has gathered a team of experienced and knowledgeable partners to support its mission. These partners bring diverse backgrounds and experiences in fintech and investments, contributing their expertise and resources to the success of the fund.
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Leadership of the Fund Comments on the Launch
Statement from Ron Kalifa, Author of the Kalifa Review
Ron Kalifa, the author of the Kalifa Review of UK Fintech, expressed his delight at the launch of the fund. He sees it as an important step towards supporting the growth of UK fintech businesses and ensuring that the country retains its leadership role in the industry.
Statement from Lord Dominic Johnson CBE, Minister of State, Department for Business and Trade
Lord Dominic Johnson CBE, the Minister of State in the Department for Business and Trade, emphasized the importance of the UK fintech sector, which attracted significant investment in 2022. He sees it as a vital component of the country’s financial services industry and believes that the fund will play a key role in supporting its continued growth.
Statement from Lord Philip Hammond, Chair of the Fund
Lord Philip Hammond, the Chair of the fund and former Chancellor of the Exchequer, expressed his support for the fintech sector. He has championed the industry throughout his career and believes that its success is crucial for maintaining the UK’s position as a global financial services center.
Expectations for First Investments
Timing of First Investments
The fund is expected to make its first investments in the fourth quarter of 2023. These investments will provide much-needed capital to fintech ventures at the growth stage, enabling them to scale and succeed.
Anticipated Impact on Fintech Growth in the UK
The first investments made by the fund are anticipated to have a significant impact on the growth of the UK fintech industry. By providing funding and support to innovative companies in the sector, the fund will contribute to the development of a thriving fintech ecosystem in the country.
