Backing the Boom: Volution Unveils $100M UK Fintech Fund

London-based fintech Allica Bank recently revealed it had doubled its profits in 2024, reaching £29.9 million. Meanwhile, neobank Revolut reported a £1 billion profit for the same year. London continues to be a global fintech hub, driven by its rich financial history and its early adoption of Open Banking. According to HSBC Innovation Banking, there are now more than 185 UK fintech startups each valued at over £1 billion.

Against this backdrop, Volution — a UK-based venture capital firm focused on FinTech, AI, and SaaS — has announced a new $100 million fund. This marks Volution’s second fund, following its initial $30 million raise, and is launched in partnership with Japanese VC firm SBI Investment Co.

Volution noted that a “significant number” of its existing limited partners (LPs) have recommitted to this new fund. The firm will target startups that have already achieved consistent revenue but require further investment to scale.

Volution has previously invested in companies such as Signal AI, Flagstone, Cognism, and Zopa Bank. Its first fund saw three successful exits.

In addition to its investment strategy, Volution has introduced an ESG initiative called “Carbon Carry,” which encourages sustainable practices and responsible growth across its portfolio.

Despite fintech’s continued strength, the broader UK tech sector has faced headwinds. Series A funding dropped 44% in 2024 compared to the previous year, and Series B conversion rates have fallen by over 50% over the past five years.