Venture funding fell in 2023 as investors took uncertain macroeconomic conditions into account and doubled down on due diligence. 

Global venture funding in 2023 stood at $248.4 billion, down 42% year over year, its lowest point since 2017, according to a Jan. 4 State of Venture 2023 report by business analytics provider CB Insights. Global fintech funding also took a big hit, down 50% YoY to $39.2 billion, according to a Jan. 18 State of fintech report by the same provider.

In 2023, most fintech venture funding, according to the report, went to:  

• U.S. firms, at $3.7 billion;  
• Asian firms at $2.1 billion; and  
• European firms at $1.7 billion. 

Funding for banking-related startups in Europe stood at $100 million across 10 Q4 deals, down 50% sequentially across eight deals. 

While fintech funding has remained subdued, investors are keen on investing in AI-driven startups for long-term returns, according to the report. For example, Paris-based startup Mistral AI raised 385 million euros ($415 million) to hit a valuation of $2 billion, according to Crunchbase. 

The following United Kingdom and European startups recently raised funds: 

Zilo nabs $31M in series A

Asset and wealth management software provider Zilo has raised $31 million in a series A round led by Citi, Fidelity International Strategic Ventures and State Street, according to the company’s Jan. 9 release. 

The “fundraise is a major milestone for Zilo, which will enable us to pursue our strategic growth plans on our journey to revolutionize the transfer agency space, removing outdated legacy technologies and dramatically improving the cost efficiencies of financial institutions’ operations,” Andy Wilson, chief commercial officer at Zilo, told Bank Automation News. 

The company has raised $48 million since its inception in 2020 and provides trading settlements in multiple currencies along with providing a platform to trade digital assets, the company’s website stated.  

Zilo’s software enables firms to replace legacy transfer agency technologies, “many of which were developed more than 20 years ago, improving client outcomes,” James Devlin, principal at Fidelity International Strategic Ventures, said in the release. 

Unbox nabs $13M from HSBC AM

Asset exchange and fund distribution company Unbox raised $13 million in a series A round led by HSBC Asset Management and SFPIM Relaunch, a subsidiary of the Belgian Sovereign Wealth Fund, according to the Brussels, Belgium-based company’s Jan. 9 release. 

Unbox helps users buy, sell and trade tangible and intangible assets on its platform, according to the company’s website. It has raised $19 million since its inception in 2020 from investors including London-based $2.9 trillion HSBC and Brussels, Belgium-based $384 billion KBC Bank.  

Unbox aims to use the money building out the technology, commercialization, and hiring of talent, a spokesperson told BAN.  

Having investors like HSBC is “smart and strategic money” for the company as it comes with an existing network and industry experience, the spokesperson said.

“There are a lot of opportunities around creating transparency in funds and other value flows,” the spokesperson said. “We are the one solution that is ready to scale and has the right, decentralized protocol to solve complex questions.”

Fintech 10x Banking raises $50M

London-based fintech 10x Banking announced on Jan. 15 that it raised $50 million in a venture funding round led by existing investors including JPMorgan and BlackRock, according to a company release.

10x Banking, founded by former Barclays Chief Executive Antony Jenkins, has raised $297 million since its inception in 2016, according to Crunchbase. The digital banking solutions provider has helped Chase penetrate the U.K. retail banking segment and aims to help banks in providing their consumers with digital transactions and customized control features for better customer experience, the release stated.

It provides a cloud-native core banking platform, SuperCore, to its banking customers and helps them migrate their data to the cloud, according to 10x Banking.

The company has operations in the U.K., Australia and New Zealand, with strategic expansion on the horizon, according to the release.

According to the company website, Australia-based $662 billion Westpac and $3.4 trillion JPMorgan Chase are clients.

Rivero raises $7 million

Payments company Rivero has raised $7 million in a series A round led by 6 Degrees Capital and Inference Partners, according to the company’s Jan. 11 release.

Zurich, Switzerland-based company provides SaaS products for eliminating manual-based payments operations and aids companies with cross-border operations to remain compliant, the company’s website stated.

This is the first funding round for the company since its founding in 2019, and will be used to fuel the company’s growth across new markets, aid in product development and workforce, the release stated.

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