Topics
Latest
AI
Amazon
Image Credits:Volution VC team
Apps
Biotech & Health
Climate
Image Credits:Volution VC team
Cloud Computing
Commerce
Crypto
go-ahead
EVs
Fintech
fund raise
Gadgets
Gaming
Government & Policy
Hardware
Layoffs
Media & Entertainment
Meta
Microsoft
Privacy
Robotics
certificate
Social
Space
Startups
TikTok
Department of Transportation
Venture
More from TechCrunch
Events
Startup Battlefield
StrictlyVC
Podcasts
Videos
Partner Content
TechCrunch Brand Studio
Crunchboard
Contact Us
The U.K. fintech sector is on a bit of a peal . Allica Bank — a London - based fintech — recently announced it haddoubled its profits in 2024,bringing in £ 29.9 million , while neobank Revolut announced a £ 1 billion profit in 2024 . Companies of this nature keep on to spring out of London , a urban center that has become a fintech global loss leader , not only because of its long financial inheritance but also because it was a innovator of undefended banking . There are now over 185 U.K. fintech startupsvaluedover £ 1 billion , accord to enquiry from HSBC Innovation Banking .
So it ’s with that context thatVolution , a U.K.-based VC investing in fintech , AI , and SaaS startups , has launched a young $ 100 million monetary fund .
launch in partnership with Japanese VC investors , SBI Investment Co. , this will be Volution ’s 2nd dedicated fund keep an eye on its first , which came in at $ 30 million .
Volution said a “ important number ” of Volution ’s existing LPs recommitted to the new investment company .
The firm said it would aim at caller that have already establish revenue flow but that require extra capital .
James Codling , managing partner at Volution , tell TechCrunch that while the U.K. politics is focused on productivity and growth , there ’s a structural funding challenge , with early - stage funding evaporating post - Series A. He said they are out to fund companies with product - market fit and a whole go - to - market strategy .
“ We back companies that are typically anywhere between 5 million in revenue and up to 20 . That ’s a badly needed part in the grocery at the hour , and it ’s become increasingly so given what happen in the correction in the venture market 2021 - 22 . There ’s an awful lot of funds out there that are struggling to raise new cap and trying to treat with issue that they ’ve already got within their portfolio . ”
Join us at TechCrunch Sessions: AI
Exhibit at TechCrunch Sessions: AI
Previous companies Volution has back include Signal AI , Flagstone , Cognism , and Zopa Bank . The former store had three going .
In a statement , Tomoyuki Nii , a director at SBI Investment , said : “ The U.K. is a ball-shaped leader in fintech and AI , with world - course of study universities , a strong regulatory surround , and a thriving entrepreneurial ecosystem . These strengths make it an attractive finish for investment . Our cornerstone loyalty to Volution comes at a fourth dimension when Japan and the U.K. politics are strengthening economical ties to drive growth across both markets . ”
Volution is also running an ESG - focused “ Carbon Carry ” enterprise plan to encourage creditworthy and sustainable growth across its portfolio .
Although fintech is doing well , the U.K. engineering sector has faced a downturn , withfunding at Series A dropping by 44%in 2024 equate to the premature twelvemonth , and Series B rebirth rates plummeting byover 50%in the last five years .
