North West fintech hopefuls among latest Tech Nation cohort

Tech Nation, the UK’s leading network for ambitious tech entrepreneurs, has revealed the 23 scale-ups accepted on to its 2019 Fintech growth programme, including two from the North West.

The programme is delivered as part of HM Treasury’s Fintech Sector Strategy to maintain the UK’s place as a world leader in the sector.

In its second year, the six-month programme aims to help some of the most promising UK fintech companies accelerate their growth and scale at speed at home and abroad.

Starting on October 24, the bespoke programme is specifically designed to connect and create opportunities for the founders through a series of in-depth insight sessions, networking events with key stakeholders and a three-day international showcase trip to the US.

Following the call for applications in June, the successful companies were selected by a panel of expert judges from all over the UK, including Eileen Burbidge, partner at Passion Capital and chair of Tech Nation; Anne Boden, CEO of Starling Bank; and Richard Theo, CEO of Wealthify and Fintech Envoy for Wales.

The rigorous judging process requires applying companies to be at a stage of development equivalent to seed or Series A, have a product in market used actively, and be headquartered in the UK. This year also saw B2C companies accepted on to the programme for the first time.

The new cohort features a number of scale-ups within the sector that have demonstrated their credibility as future fintech leaders, with an average of £3.6m in funding raised across the companies, representing a 277% increase from last year’s cohort.

This rise in average funding raised indicates the growing maturity of the UK’s fintech sector which has skyrocketed over the past year, and its contribution to the growth of the nation’s tech sector more broadly.

This view is in line with the findings from the annual state-of-the-nation Tech Nation Report 2019, which revealed that the UK remains number one in the world for scale-up investment into fintech firms, generating £4.5bn in funding between 2015 and 2018.

In addition, fintech companies are creating numerous, well-paid jobs with employment second amongst high growth tech scaleups – more than 11,800 people employed in UK fintech firms in 2018.

Of the 23 companies, 40% are based outside of London, compared with 35% last year, and 40% have at least one female co-founder.

The cohort covers eight cities and towns outside London including Durham, Manchester, Newcastle, Liverpool, Liskeard, Cardiff and Leeds.

The companies selected provide B2B and B2C products and services across a range of sub-sectors, including most predominantly SME finance, payments, capital markets, as well as retail investing, and consumer credit and lending.

The breadth and variety of business propositions exemplifies how pervasive fintech has become in financial services. Examples of the real-world benefits and change being driven by the cohort include driving financial inclusion in the UK, enabling the charity sector, and much more.

Flying the flag for the North West are tickr, from Liverpool, and GoodBox in Manchester.

The tickr model is transforming impact investment for Europe’s next generation of investors. For people who want to invest, but want to have a positive impact on society and the environment at the same time, tickr’s app allows users to invest in socially responsible companies with as little as £5.

GoodBox serves the charity sector by providing a single point of entry to a full range of fundraising solutions. From award-winning contactless hardware, to a platform enabling charities to analyse and improve their fundraising, GoodBox provides the third sector with the tools needed to thrive in an ever-changing digital landscape.

Eileen Burbidge, chair of Tech Nation, said: “The UK has a fantastic leadership position of producing globally-renowned fintech companies, by being number one in the world for scale-up investment into fintech firms between 2015 and 2018, attracting an impressive £4.5bn in total funding.

“I’m pleased to see another diverse group of companies on this year’s programme, with 40% of companies being based outside the capital.”

Mike Jackson, Tech Nation entrepreneur success director, added: “Last year’s Tech Nation Fintech growth programme had tremendous success in connecting and creating opportunities for the most promising fintech companies in the UK, and we are hugely excited to replicate this again in 2019.

“The companies in this year’s cohort have demonstrated significant promise as future fintech leaders, and with the global fintech market expected to be worth nearly £250bn by 2023, they will play a vital role in supporting the UK to remain at the head of the global pack.”

The companies will have access to support from the programme partners: CBRE, RSM and Talent Works International, whose expertise and networks are an added benefit of being on the programme.