At Tech.eu, we’ve been meticulously tracking all funding and M&A deals involving European and Israeli tech companies for more than two years now, and in recent months have begun turning our data into valuable insights for those tracking the European technology scene in the shape of paid reports.
Today, we are releasing our first ever vertical-focused report, a vertical which is an important part of Europe’s present and future as a technology hub: FinTech (financial technology).
In FinTech, Europe has an area where it can become a global leader, with the UK/London leading the way. London has long been regarded as the global financial capital, and this legacy is now spilling its way over into today’s tech-focused world. The financial crisis in 2008 left many in the industry without a job, subsequently leading to people starting their own company or joining a FinTech startup.
And as such we see the UK feature heavily in this report. However, with Europe’s two highest valued FinTech companies based in Sweden and The Netherlands (Klarna and Adyen respectively) and Europe’s regulations a little kinder for financial institutions than in the US, we are seeing startups from all the way across Europe capitalise on the interest and opportunities that exist within FinTech.
In this report, amongst other things, we’ll look at:
- What other countries are attracting the most investment outside of the UK
- Which investors are funding Europe’s FinTech companies
- What the FinTech pipeline looks like at Seed, Series A and B
- The biggest FinTech funding rounds in 2015
- What the FinTech exit scene looks like right now
- What we can expect for European Fintech in 2016 and beyond
- 142 European FinTech investments in 2015, totalling €1.8 billion
- €1.8 billion represents over 10% of the total amount invested in Europe in 2015
- 64% of the investments happened in H2 demonstrating that momentum is still increasing
- UK led the way, followed by Germany, then Sweden and Spain behind them.
- UK and Germany accounted for 84.6% of the total amount invested
- Nearly 1 in 3 (29.57%) FinTech investments were made in the UK
- There were three €1 billion + FinTech exits in 2015
- U.S companies were the biggest acquirers of European FinTech startups
“As this Tech.eu report so effectively illustrates”, writes Passion Capital partner and Tech City UK chair Eileen Burbidge in the report’s foreword, “the FinTech sector across Europe is flourishing with no signs of slowing down. As digital economies mature around the world, it’s only natural that bringing technology innovation to the backbone of trade, commerce growth, and value creation is such a tremendous force.”
“The benefits of this are not simply for the financial sector itself, but also ultimately to end users (consumers and businesses alike) by bringing increased competition and innovation to the table. Improved quality, usability, transparency and financial inclusion are not only overdue but finally truly enabled at scale with the benefit of technology,” Burbidge posits.