Business & Technology
Mid-sized fintech firms squeezed out as funding tightens
Mid-sized fintech firms are disappearing as funding tightens, reshaping the sector around larger platforms and earlier-stage startups.
The pressure is hitting companies that raised Series B to Series D funding, built working products and acquired customers, but have not reached the scale of market leaders. They are caught between investor demands for clearer paths to sustainable revenue and rising operating costs driven by regulation and competition.
During the low-interest-rate period of 2020 and 2021, many fintech groups expanded quickly as venture capital flowed freely. Investors prioritised growth over profitability, and companies hired aggressively to win market share. That backdrop has reversed. Higher rates and weaker risk appetite have pushed investors towards businesses with stronger margins, more predictable income or clear market dominance.
The result is a squeeze on what some investors and founders describe as fintech’s middle tier. Smaller startups can still attract capital for new ideas, while larger companies can rely on scale and established revenue streams. Firms in between often need fresh funding to keep growing, yet face greater scrutiny over whether that growth can deliver acceptable returns.
Recent closures
Several recent UK shutdowns illustrate the pressure on this group. Payments app VibePay entered voluntary liquidation in early 2026 after a proposed acquisition collapsed and investor backing was withdrawn. The business had raised more than GBP £12 million and built a user base around open banking payments.
SmartLayer, focused on AI-based home finance infrastructure, also closed after three years, despite having worked with a major bank on product development. Another consumer fintech, Zero, ceased trading after failing to secure further funding, despite attracting tens of thousands of users.
These businesses had products in the market, active users and, in some cases, institutional relationships. Their closures point to broader structural pressure rather than isolated operational mistakes.
Capital shift
Investment has shifted towards fewer, larger deals. Backers are concentrating capital in companies that can already show scale, profitability or both, leaving less support for firms seeking incremental expansion after their initial product launch and first wave of customer growth.
That has narrowed the viable paths for mid-sized fintech groups. Some grow into larger platforms. Others are sold to bigger players seeking technology, licences or customer bases. A rising number are pushed into restructuring, strategic pivots or closure.
Investor preference has also moved towards financial infrastructure rather than consumer-facing applications. Payment rails, compliance software and financial application programming interfaces are attracting interest because they tend to generate steadier business-to-business revenue and are more deeply embedded in financial systems.
By contrast, many mid-tier fintech companies operate mainly through front-end apps. They compete on user experience and brand, which can require heavy marketing spend and make it harder to defend margins. As capital shifts towards infrastructure, these application-led businesses risk losing investor attention.
Regulatory burden
Regulation is adding to the strain. As fintech companies grow, they face stricter oversight and higher compliance costs. Large operators can spread those costs across bigger revenue bases, while early-stage startups often remain below key regulatory thresholds for longer.
Mid-sized firms are more exposed. They may face the full burden of compliance without the financial resources of larger rivals. That makes scaling more expensive, just as investors demand stronger evidence of efficiency and profit discipline.
Artificial intelligence is intensifying the divide. Bigger firms can use automation across customer service, compliance and risk management to lower costs. Startups can build AI-native products without the legacy cost structures of more established businesses.
Companies in the middle often have existing teams and systems that are costlier to adapt. At the same time, AI is making many consumer-facing features easier to replicate, from budgeting tools to transaction categorisation and financial insights. That weakens businesses that once stood out on product features alone.
Fewer exits
Exit options have also narrowed. Public listings have become less common for this part of the market, partly because weaker conditions make it harder to justify the valuations secured in earlier funding rounds. That has reduced flexibility for founders and investors and increased pressure to pursue trade sales or internal restructuring.
The broader result is a more concentrated market. At one end are large fintech platforms such as Revolut and Wise, which continue to expand their product ranges and customer bases. At the other end are newer startups testing niche ideas or targeting specific market gaps.
Between those poles, the number of viable independent companies is shrinking. Fintech innovation continues, but the room for a business to remain sustainably mid-sized is getting smaller.
The sector is becoming more polarised, with fewer companies able to stay in the middle.
Business & Technology
Ssen Transmission joins European cyber security network
SSEN Transmission has joined the European Network for Cyber Security as an Information & Knowledge Sharing member, bringing a major UK electricity transmission operator into a European cybersecurity network for critical infrastructure.
The membership gives SSEN Transmission access to ENCS research, technical documentation and knowledge-sharing with European transmission and distribution system operators. Key areas include testing, operational technology security operations and the development of cybersecurity practices for grid infrastructure.
SSEN Transmission operates the high-voltage electricity transmission network across the north of Scotland. Its network covers more than a quarter of the UK’s land mass and includes substations, overhead lines, underground cables and subsea cables.
The decision comes as cyber threats to essential services face growing scrutiny from governments and operators. The UK National Cyber Security Centre reported 204 nationally significant cyber incidents in the year to August 2025, up 130% on the previous year, including cases affecting critical infrastructure.
Shared concerns
ENCS is a non-profit membership organisation that works with critical infrastructure groups and security specialists across Europe. Founded in 2012, it supports members through applied research, technical security requirements, testing, education and training.
Its network includes transmission system operators, distribution system operators and regulators. By joining as an Information & Knowledge Sharing member, SSEN Transmission is entering a forum focused on common cybersecurity issues across energy networks, rather than a bilateral arrangement with a single partner.
That matters because electricity operators increasingly face similar challenges across borders, especially in the operational technology environments that underpin power networks. Utilities must also respond to a regulatory climate in the UK and EU that places greater emphasis on secure systems and formal cybersecurity practices.
“Cybersecurity is a shared challenge across Europe’s energy sector, and collaboration is fundamental to staying ahead of evolving threats,” said Anjos Nijk, Managing Director of ENCS.
“Across both the UK and EU, regulatory frameworks place clear requirements on investment in robust security practices and secure systems. We are pleased to welcome SSEN Transmission to ENCS and strengthen cooperation across the sector,” Nijk said.
Cross-border work
For SSEN Transmission, the arrangement broadens the expertise available to its operational technology and cyber teams. The company is in the middle of a wider investment and build-out programme tied to the electricity network in northern Scotland, where infrastructure upgrades are closely linked to reliability and the transmission of power over long distances.
Operational technology security has become a particular concern for energy operators because these systems control physical assets and industrial processes. Disruption in these environments can have consequences beyond data loss, affecting electricity flows and service continuity.
Participation in the ENCS network will help the UK operator look beyond domestic peers and compare approaches with companies across Europe. That includes exchanging practical experience on security operations and learning from work already carried out elsewhere in the sector.
“Joining ENCS provides an opportunity to collaborate with peers across Europe at a time when regulatory expectations around energy network cybersecurity continue to evolve. With the growth journey that SSEN Transmission is undertaking, it is vital that we look beyond our UK peers to ensure we are tapping into best practice across the continent to solve the shared problems and escalating cyber threats we face as operators of essential services,” said Iain Dougan, Head of Operational Technology and Cyber at SSEN Transmission.
The announcement also points to closer links between UK and European operators on cybersecurity despite differing national systems and regulatory structures. Grid operators often face the same technical risks in industrial control systems, supply chains and field equipment, making sector-wide exchanges valuable even when assets remain nationally owned and managed.
For ENCS, adding a large British transmission operator extends its reach into a strategically significant part of the European energy system for electricity transmission and offshore network development. For SSEN Transmission, the membership places it inside an established network focused on the cybersecurity of critical energy infrastructure.
The backdrop remains a rise in serious cyber incidents affecting organisations that run essential services, with the UK recording 204 nationally significant cases in the year to August 2025.
Business & Technology
Oxfordshire village shop and cafe finalist in national award
Kirtlington Community Shop and Cafe is currently under construction, after a community share offer running since 2020 raised the funds for the purpose-built business in the village west of Bicester.
Already the project is gaining recognition, as it has been shortlisted as a finalist for the Rural Community Business Awards 2026.
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The annual awards, sponsored by Lands Improvement and hosted by Woodstock-based charity Plunkett UK, have named the rural businesses in the ‘One To Watch’ category.
Construction of Kirtlington Community Shop and Cafe is currently underway (Image: Amanda Deadman Photography)
Celia Hawkesworth, chair of the management committee for the new shop, said: “We’re thrilled to be one of the finalists in the ‘One To Watch’ category.
“We’ve been working hard on this project since 2020, and it’s an honour to be recognised alongside the best community-owned businesses when we’ve barely got started.
“Exciting times are ahead as we work towards opening our new shop and cafe later in the summer.”
Construction is underway at Kirtlington Community Shop and Cafe (Image: Amanda Deadman Photography)
Locals came together after the village’s shop closed in 2020, and since then successfully raised £233,500 towards the £275,000 target funds needed for the project.
This includes £180,000 raised through a community share offer, meaning villagers have personally invested in the scheme.
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A ground-breaking ceremony was held on April 10 this year to mark the beginning of construction of the much-wanted community shop and cafe.
The ground-breaking event of Kirtlington Community Shop and Cafe in April (Image: Amanda Deadman Photography)
The new shop and cafe, designed to bring services ‘back to the heart of the community’, will be housed in a purpose-built, energy-efficient building next to the village hall.
Plunkett UK, a national charity which supports people in rural areas to set up and run a wide range of businesses in community ownership, provided the village group with ‘invaluable’ advice, according to the committee chair.
The charity’s vision is to create resilient, thriving and inclusive rural communities by extending the number of democratic, community-owned business from the more than 850 already operating in the UK.
Construction is underway at Kirtlington Community Shop and Cafe (Image: Amanda Deadman Photography)
Its rural community business awards celebrates businesses that contribute to their areas across nine different categories, from the ‘going green’ award to ‘team spirit’ and ‘young person’.
READ MORE: Listed village pub near Banbury up for sale after 13 years
Sarah Benn, Relationships Team Leader at Plunkett UK, said: “It has been inspiring to see so many people nominate their local community-owned businesses, truly emphasising the significant role they play in their communities.
“We celebrate the considerable impact each one is making it its local area and we are looking forward to next month’s awards event when the winners are announced.”
The award ceremony will take place at The Royal Society of Chemistry in London on Thursday, July 2.
The Kirtlington Community Shop and Cafe is expected to open later in the summer.
Business & Technology
Millions risk buffering as football streaming surges
More than 30 million UK adults plan to watch or stream football matches this summer, according to Uswitch, which warned that broadband speeds in some parts of the country could leave households behind the live action.
Research cited by the comparison site found that 56% of UK adults expect to follow matches during the tournament, while 35% said a goal or other key moment had previously been spoiled because their stream lagged behind real time.
The figures highlight a gap between growing demand for live sports streaming and the quality of home broadband connections in several regions. Uswitch estimated that about 2.4 million households in the five worst-performing regions could face disruption during matches.
The South West ranked as the weakest region for what Uswitch called 4K readiness, with 21.8% of households below the 25 Mbps speed it uses as a benchmark for streaming at that quality. Scotland and Wales followed, with 19.0% and 18.9% of households respectively below that level, ahead of the East of England and the South East.
By contrast, the North West recorded the highest readiness score in the regional table, with 84.5% of homes above the threshold. Greater London, the East Midlands, Yorkshire and The Humber, the West Midlands, Northern Ireland and the North East all ranked above the five weakest regions.
Regional divide
At city level, Kirkwall in Scotland was listed as the least ready location for streaming, with 70.1% of homes meeting the benchmark. Llandrindod in Wales, Perth in Scotland and Truro in the South West were also among the weakest locations in the data.
Other South West locations, including Exeter, Torquay and Plymouth, featured in the bottom 10, alongside Aberdeen, Dumfries and Shrewsbury. In Truro, Exeter and Plymouth, roughly one in four households may struggle to stream matches smoothly, while in Kirkwall and Llandrindod the figure was closer to three in 10.
The survey suggests many viewers will put additional pressure on home connections during matches. Some 36% said they expected to watch multiple games each day, 46% planned to use a second screen such as a phone or tablet while watching, and 32% expected at least three devices to be connected to the internet at the same time.
That matters because even homes that can support a single stream may run into problems when several devices are online at once. Two-thirds of adults, or 66%, said they had already experienced buffering or lag while streaming television at home.
Watching habits
The audience for the tournament also appears likely to extend beyond regular football viewers. According to the survey, 61% of those planning to watch said they would tune in to matches they would not normally follow.
Regional fan interest was strongest in London, where 69% of respondents were classified as football-mad in the research, followed by Yorkshire and Humberside on 66% and the West Midlands on 63%. At city level, Sheffield led on 67%, ahead of Birmingham, London and Leeds.
The North West stood out as a market where strong football interest and comparatively better broadband performance overlap. Liverpool and Manchester both featured among the most football-focused cities in the survey, while the region also led on the share of homes above the 25 Mbps threshold.
Max Beckett, Broadband Expert at Uswitch, said: “Millions of fans risk watching this summer’s football through a buffering screen rather than a clear picture. In parts of the South West and Scotland in particular, broadband simply isn’t keeping pace with the streaming demand a tournament of this size creates. That means millions could miss key moments, or worse, that winning goal. Check your speed before kick-off. Waiting until the opening match to discover your connection can’t handle it is the worst time to find out.”
Uswitch based its regional and city analysis on broadband speed tests recorded over the past 12 months. It defined readiness as the share of tests showing download speeds of 25 Mbps or more, and used postcode areas as a proxy for city geography.
The survey was conducted by Opinium among 2,000 UK adults and weighted to be nationally representative. On that basis, Uswitch estimated that 30,812,461 adults expect to watch or stream matches during the tournament.
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