The UK fintech industry is rolling a little. Allica Bank – a London-based fintech – recently announced it had doubled its profits in 2024, bringing in £29.9 million, while Neobank Revolution announced a £1bn profit in 2024. Companies of this nature continue to spring out of London, a city which has become a fintech global leader, partly because of its long financial heritage but also because it was a pilot of Open Banking. According to research by HSBC Innovation Bank, more than 185 UK fintech startups are now worth more than £1 billion.

So it is in this case that Volution is a UK-based VC investment fintech, AI and SaaS startup that has launched a new $100 million fund.

Launched in partnership with Japanese venture capitalist SBI Investment Co., it will be Volution’s second dedicated fund, the first investment fund, with a price of $30 million.

Volution said that “large” of Volution’s existing LPS is recommended to new funds.

Volution said it will target companies that have established revenue streams but require additional capital.

Volution's managing partner James Codling told TechCrunch that despite the focus on productivity and growth, the UK government faces structural funding challenges, with early-stage funding evaporating, after the evaporation of Series A Series A.

"We support companies that typically have between 5 million revenues and 200,000. This is a much-needed part of the one-minute market, and it's an increasing part considering what's going on in the correction of the risk market 2021-22. There's a lot of money out there. There's a lot of effort to raise new capital and try to deal with the issues they've gotten into."

The Volution of previous companies supports Signal AI, Slate, Cognitive and Zopa Bank. Previous funds had three exports.

In a statement, Tomoyuki Nii, a director at SBI Investment, said: “The UK is a global leader in FinTech and AI, with world-class universities, a strong regulatory environment, and a thriving entrepreneurial ecosystem. These strengths make it an attractive destination for investment. Our cornerstone commitment to Volution comes at a time when Japan and the UK government are strengthening economic ties to drive growth across Both markets.”

Volution also adopts an ESG-centric "Carbon Carrier" program designed to encourage responsible and sustainable growth of its portfolio.

Despite the good performance of FinTech, funding in UK technology sectors has dropped by 44% in 2024 compared to the previous year, while Series B conversion rates have dropped by more than 50% over the past five years.