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In the last few years, the country of the United Kingdom has emerged as one of the biggest hotspots in the field of technology and innovation. Just to blow your mind with some facts, it is estimated that a new start-up emerges in the UK every second.
Undoubtedly, London is one of the hottest destinations as far as tech start-ups are concerned. The city is closely followed by Manchester, Leeds as well as Bristol as centers where digital growth and performances are being experienced.
There is no doubt that the COVID-19 Pandemic has affected business dynamics. The UK has been no different. It was one of the countries, which were most affected in terms of fatalities and rates of hospitalization.
In this background, the start-up ecosystem has really exploded. New enterprising entrepreneurs are redefining existing business set-ups and have brought in a much-needed vibrancy and dynamism. It has also generated fresh employment and contributed to increased income.
In this resource article, we are going to look at the five best start-ups revolutionizing the United Kingdom. We discuss some major players from the fintech, insurance, and cybersecurity fields. Before we get to the list, let us first explore some factors contributing to growth.
The Growth of Start-Ups in the United Kingdom: What is fuelling the growth?
$30 Billion!
That is the total sum of money that start-ups from the United Kingdom have raised in 2021 alone (the year has not ended as well). To put that into perspective, this amount is double the investments that were raised as compared to 2020.
In a matter of a few years, the United Kingdom has overtaken both Germany as well as France in terms of attracting investments. As of now, the UK is only after the United States and China. This growth is expected as investors shun public stocks and look to pick up equity.
Data suggests that in terms of the niche, it is businesses in the fintech space that have been able to raise the largest funds. Fintech players are emerging after the Brexit and the devaluation of the GBP.
There are in all more than 300 players in the fintech space that have been able to raise more than $12 billion between them in 2021 alone. The following are some factors that are contributing to the growth of start-ups in the United Kingdom-
- The Brexit has pushed the government to start aggressively mobilizing businesses within the country. There is no doubt that Brexit is playing a major role in terms of encouraging self-sustenance, providing employment, and generating income.
- Secondly, the falling Great Britain Pound (GBP) also necessitated the growth and expansion of the local business ecosystem. With Euro and Dollar rising in the aftermath of the recent pandemic, the GBP needed to perform as well.
- Thirdly, the COVID-19 Pandemic has acted as a catalyst in boosting the tech start-up space. Leading professionals realized that starting something of their own will not only help them remain safe financially but also raise hobs and incomes for others.
- Fourthly, the ascension of cryptocurrency and it becoming a major force in the financial systems has also opened up space. Traditional banks and lenders could not cater to the growing needs of the consumers, which provided opportunities to the start-ups.
List of the 5 Best Currency UK Start-Ups in 2022
1. Wise
If there is one fintech start-up in the world that has made the United Kingdom popular, it is Wise (previously known as Transfer Wise). In the last few years, Wise positioned as one of the best brokers in the currency exchange and foreign money transfer space. The emphasis on transparency and lower commission fees has made it attractive for both professional individuals looking at remittances as well as small businesses that want to save on higher exchange fees.
2. Oak North Bank-
When it comes to powering small business growth, traditional and established lenders are simply unwilling to take the risk. This has allowed players like Oak North Bank to not only make a foray into banking but also establish itself as one of the leading funding names behind small businesses. It is highly profitable and has been able to achieve more than $66 Million. With a valuation nearing $3 Billion, it is expected to rise in the near future.
3. Lendable
Lendable is a fintech start-up that has been able to become profitable in the first few years of its existence. Lendable counts Goldman Sachs as one of its leading backers. Now valued at over $1 Billion, Lendable has been able to establish itself as one of the leading names Lendable overcomes bureaucratic red-tape and allows businesses and professionals to gain loans instantly. With the process being completely online, Lendable brings convenience.
4. Darktrace
With cybersecurity becoming one of the major concerns for businesses of all shapes and sizes, start-ups like Darktrace are providing constructive solutions. The company’s USP is that it uses AI and machine-based algorithms to predict cyber threats and attacks. It allows businesses various insights that help them address phishing attacks, malware placements, and data losses. Darktrace is one of the leading players which counts Sequoia as one of its investors.
5. Monzo
Everyone seems to be fed up with traditional banking institutions. Given how they have not been able to adapt to the changing needs of the time, players like Monzo have emerged as credible alternatives. It aims to bring all your banking and financial needs into one single platform. This means everything from your credit card payments to providing payment solutions to businesses, Monzo has been able to become a darling of the millennials.
The Final Word
In addition to the fintech space, two other areas that are seeing growing engagements are healthcare and climate change. UK start-ups are now emerging as leading players in the international tech and start-up space. With foreign currency, crypto, and insurance redefining our business and professional ecosystems, the next few years are going to witness a drastic increase in the number of start-ups not only in the United Kingdom but also in different parts of the world.
