Based on a sample of 28 fintech start-ups in the UK, updated as of 1st January 2018.

For a full copy of the research please contact us at michael@clarusinvestments.com.


An analysis of a sample of fintech startups in the UK illustrates the typical financing characteristics of these start-ups and some of the issues for entrepreneurs and investors.

From the sample, 7 of the companies have been through 7 or more rounds of funding, and another 2 have been through 6 rounds of funding. The average number of rounds is 4.6 (median 4.0).

The average time between rounds is 314 days (median 275 days) with a wide range, for example:

  • Tandem has had 8 rounds of funding with only 130 days between rounds on average.
  • Kantox has had 5 rounds of funding with an average of 547 days between rounds.

The longest time since last funding is for ComplyAdvantage at 664 days followed by Azimo at 625 days.

The average amount raised at the first round of funding was £833k (mean £660k) and the average shareholding of first round investors was 27% (median 24%). There is no typical approach to first round funding and the range is large in terms of the amount raised and the shareholding given up to first round investors, from 9% to 69%. Two digital banking start-ups illustrate the widely contrasting approaches:

  • Atom Bank raised £3.4m at first round but was required to give up 69%.
  • Tandem raised just £0.3m at the first round for a shareholding of 12%.

We have also noted that average number of founders per company is 1.9 (median 2.0). The range is from 4 (e.g. Monzo) to just 1 (e.g. Revolut). On average, founders have retained 31% of the equity as of current funding rounds (median 34%). Note that this does not take account of share incentive schemes and the fact that some founder shares might have restrictions. The founders retaining the most value to date on paper are at TransferWise at around £229m per founder. The founders of Revolut and Funding Circle are also sitting on very valuable ownership stakes on paper.