UK fintech funding dropped significantly in the first quarter of the year, according to the latest quarterly report from data intelligence platform Tracxn. According to the report, UK fintechs raised $741m (£544.2m) in the first three months of the year, a decline of 43% compared with the last quarter of
Oscar Hornstein
UK fintech funding dropped significantly in the first quarter of the year, according to the latest quarterly report from data intelligence platform Tracxn.
According to the report, UK fintechs raised $741m (£544.2m) in the first three months of the year, a decline of 43% compared with the last quarter of 2025.
The amount of funding raised also represents a 17% decline compared with the first quarter of last year.
The report has claimed that “late-stage compression” was behind the decline, with later-stage rounds in the sector falling 62% from the fourth quarter of 2025.
Despite the reduction at the late-stage, early-stage funding soared over the period. Early-stage UK fintechs raised $276m (£202.7m) in Q1 2026, up 35% from the end of last year and an enormous 177% increase from the start of last year.
Tracxn described the new figures as less of a decline and more a realignment of investment structures.
The top rounds recorded in the sector over the period were 9fin Technologies’ £130m Series C round and Allica Bank’s £115m Series D round. In both cases the firms secured unicorn valuations.
