In partnership with Finstar, an international private equity and investment advisory firm with around $2 billion of assets under management, we are today launching a brand new report focused on the ever-growing fintech sector in Europe.
Based on tech.eu’s proprietary database of deals, with complementary analysis of the state of European fintech by our editorial team and a heap of contributions from investors and entrepreneurs from across the ecosystem(s), the report will give you unparalleled insights into how one of Europe’s premier business verticals is faring in these COVID-19 times.
You can download the report for free here, and we will also publish some of the most interesting parts of the research at regular intervals in the coming weeks, culminating in a free event where we will be presenting the report findings along with additional facts and figures. During the upcoming event, which will be held virtually on 10 February, we will not only serve up updated numbers for the second half of 2020, we will also give you a perspective on how the European fintech sector has coped with the realities of a COVID-19 world.
Stay tuned for more info on the event! You can sign up for our newsletter to stay informed about this, upcoming reports, and much more.
“The COVID-19 crisis has brought forward a lot of changes in the world, altering the way we work, shop, collaborate and move around. As this report shows, many trends that have been accelerated by the coronavirus pandemic have in fact proven to be beneficial to the European fintech industry. Around €10 billion of funding was raised by fintech startups and scale-ups in Europe throughout 2020, and we’re seeing bigger rounds, bigger companies, and bigger ambitions. This report demonstrates that the European fintech sector is in good shape, and Finstar is looking forward to invest in the future leaders in this space.”
>> Mr. Oleg Boyko, founder and Chairman of Finstar Financial Group
The data analysed for the new tech.eu report spans funding and exit deals that we’ve tracked from Q1 2017 until the end of H1 2020 (to account for reporting lag and allow for in-depth analysis); here are some of the main take-aways:
– European fintech companies raised a total of €3.52 billion in 2018; this number ballooned by 150% to €8.81 billion in 2019. In the first half of 2020, around €4 billion was raised by European fintech companies, and strong activity in H2 suggests a total number of approximately €10 billion for the year (more on that in our upcoming event).
– Previous research had already indicated that fintech is the category in Europe where most funding flows to, across all stages but now we can see that this is most notable at late-stage: While tech.eu tracked only four €100 million+ fintech financing deals in Europe in 2018, that number increased 5X in 2019 alone, and last year that trend continued.
– tech.eu tracked on average 369 funding deals annually for fintech companies across Europe from 2017 to 2019; more than one per day. In the first half of 2020, we tracked 219 fintech funding rounds, which means the number of deals is also growing.
– The size of financing rounds for fintech companies is growing quickly: the mean funding size per round more than doubled in the analysed timeframe, from roughly €11 million on 2018 to €25.5 million in 2019.
– From 2017 to H1 2020, the UK firmly took the lead in European fintech with just south of 500 fintech funding deals during that timeframe, with Germany and Sweden following with an almost equal number of transactions (172 and 155, respectively).
– Around €8.1 billion was invested in UK fintech companies in the last three full years, which is 48% or almost half of all fintech financing rounds tech.eu recorded from 2017 to 2019.
– Index Ventures, which has backed the likes of Funding Circle, Adyen, iZettle, TransferWise and Revolut, topped the list for most European fintech funding rounds from 2017 to 2019.
– There has not been a similar surge in exit activity. As European fintech companies raise more funding, their desire or need to go public or sell goes down. Even though there were more acquisition deals in the European fintech space in 2019 than in 2018, there’s been a 28.5% drop from 67 to 48 compared to 2017.
There is much more in the full report, which can be downloaded free of charge here.
Enjoy the read and do not hesitate to give us feedback!