London received more FinTech investments than the other major European cities combined since 2014.
London has established itself as the European FinTech capital in the past three years attracting over $3.6bn of investments into the sector during that period. Following in second place is Berlin which has raked in only $670m in FinTech funding, less than fifth of the amount raised by London-based companies. Third place was occupied by Stockholm, which was pushed by the large rounds raised by Payments & Remittances giants Klarna and iZettle. Paris is the only other city in Europe to have raised over $0.5bn since the beginning of 2014.
London has attracted over three-times the number of deals compared to Berlin, the second city on the list
- London’s FinTech dominance is not only based on large deals as it also attracted significantly more transactions than other cities in Europe. More London-based companies received funding since 2014 than the next five cities on the list combined.
- While Dublin was the fifth largest city for total funding, it comes in at ninth place in terms of number of deals. Over 60% of FinTech deals closed in Dublin are valued above $1m, with companies such as Future Finance raising $143.25m in debt financing in 2016.
- Unlike Dublin, cities such as Amsterdam, Barcelona and Copenhagen are early-stage focused with less than 30% of deals valued over $1m.
The top four cities: London, Berlin, Stockholm and Paris have a strong start to the year
- Berlin and Paris have both seen increases in their funding YoY since 2014.
- Stockholm, on the other hand, saw a gradual decline in funding during the period. However, in the first quarter of the year the city received 91.4% of the total funding for 2016. This is mainly driven by point-of-sale firm iZettle, which raised a total of $63m through a mix of debt and equity financing round.
- The other three cities also had good first quarters. With London, Berlin and Paris raising 39.4%, 40.4% and 35.1% of their total investment in 2016, respectively.
Berlin is capturing increased share of FinTech investments in Europe
- Paris saw the biggest increase in deal share among the top four cities in Europe growing from 12% in 2014 to 19% in 2016. The trend continued in the first quarter of this year where the city received 19% of the deals closed across all four cities.
- Stockholm and Berlin have both seen gradual increases in their deal share between 2014 and 2016; however, in Q1 2017 Stockholm’s deals share fell to 12%.
- 2016 was the first year where Berlin, Stockholm and Paris received more than 50% of total deals for the top four cities. This trend has continued into Q1 2017.
The data for this research was taken from the FinTech Global database. More in-depth data and analytics on investments and companies in Europe as well as across all FinTech sectors and regions around the world are available to subscribers of FinTech Global. ©2017 FinTech Global