Financial industry figures lead plans to set up £1bn UK FinTech fund

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According to Finextra, a group of financial industry figures are leading plans to set up a new £1bn FinTech fund to accelerate the growth of promising UK scale-ups.

Key names leading the plans are former UK Chancellor Philip Hammond as well as the FinTech Alliance’s Phil Vidler.

Hammond already acts as a financial adviser to Copper – a UK crypto startup as well as challenger OakNorth Bank.

Sources in the city told Sky News the fund would seek to raise capital from institutional investors and would be independent of the government.

Finextra said companies such as Barclays, LSEG and Mastercard have been approached to provide small amounts of seed funding to get the new vehicle up and running.

The fund would aim to fill a funding gap identified by Ron Kalifa as part of his government-backed review of UK FinTech.

The report states: “With a £2bn fintech growth capital funding gap in the UK, many entrepreneurs would rather sell than continue to build their promising business. There’s £6,000,000 in UK private pensions alone, a small part of which could be diverted to high-growth tech opportunities like fintech. »

The goal, Finextra said, would be to provide funding to companies as they progress past the Series B stage of capital raising, when they typically seek to raise tens of millions of dollars. dollars to “step up” their operations.

Latin American tech startup Clara, which offers business expense management solutions, recently secured up to $150 million from Goldman Sachs.

Clara said it’s shaping the future of how businesses manage their finances, while helping their customers be more successful. Clara’s products include business credit cards, an expense management system, and a payment and transfer platform SPEI; are already being used by some of the region’s fastest growing startups and companies.

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