A recent report reveals key insights for UK startups outside of London, suggesting they should have multiple founders, prioritize gender diversity, and participate in accelerators.
The study, titled ‘Scaling UK Regional Fintech’, was conducted by Innovate Finance, Streets Consulting, and Whitecap Consulting. It examined 250 fintech scaleups and found that those with multiple founders typically experienced greater revenue growth. Additionally, startups with female founders reported a turnover growth of 30% more than those led solely by men.
However, the report highlights a troubling statistic: only 16% of the surveyed startups included a female founder. Julia Streets, CEO of Streets Consulting, commented, “The data on diversity from this report is bittersweet. We see that fintechs founded by women significantly outperform those founded by men, yet fewer than a fifth of fintech firms are led by women.”
The report advocates for initiatives that promote diversity in fintech leadership and build upon the recently established government taskforce aimed at creating funding opportunities for female-founded fintechs. It also emphasizes that the success of startups outside London demonstrates that the location is less crucial than the approach taken to scale a business.
Julian Wells, director and fintech lead at Whitecap Consulting, stated, “The main message for us from this report is that in today’s world, how you scale a business is far more important than where you scale it.”