The UK's fintech sector is on a bit better. London-based fintech Allica Bank announced it doubled its profits in 2024, bringing £29.9 million, while Neobank Revolut announced its profits in 2024 of £1 billion. A study by HSBC Innovation Banking shows that more than 185 UK fintech startups are currently valued at over £1 billion.
That's why Voltion, a UK-based VC investing in FinTech, AI and SaaS startups, has launched a new $100 million fund.
Started in partnership with Japanese VC investor SBI Investment Co., the first VC Investment Co., the first VC Investment Co., was its first second dedicated fund, and arrived for $30 million.
Voltion states a “slightly number” of existing LPS for Volume, recommended for new funds.
Voltion said it aims to be a company that already has a revenue stream but needs additional capital.
Volume's managing partner James Codling told TechCrunch that the UK government is focusing on productivity and growth, but early stage funding is evaporating Post Series A.
“We usually support companies with revenues between 5 million and 20 people. That's a terrible need in the market at that moment, and given what happened with the revision at Venture Market 2021-22, we have more and more funds, we're struggling to raise new capital and are trying to address the issues already within the portfrio.”
Previous company Voltion includes Signal AI, Glagstone, Cognism and Zopa Bank. Previous funds had three exits.
In a statement, Tomoyuki Nii, Director of SBI Investment, said: “The UK is a global leader in fintech and AI, a world-class university, a strong regulatory environment and an entrepreneurial ecosystem, and these strengths make them an attractive destination for investment.
Voltion is implementing an ESG-focused “carbon carry” initiative designed to promote responsible and sustainable growth throughout its portfolio.
Fintech is on track, but the UK technology sector faces a recession with a 44% decline in Series A funding in 2024 compared to the previous year, with Series B conversion rates falling by more than 50% over the past five years.