FinTech investments in the Netherlands increased over three times QoQ in Q1 2017

The Dutch FinTech sector rallied in Q1 2017 after a slump in the second half of last year, as companies received the most funding since Q1 2016.

The FinTech industry in the Netherlands is already well established in the country’s economic landscape. It boasts a large amount of active companies, with Amsterdam leading the way with over 350 FinTech companies headquartered in the Dutch Capital. Investment to the sectior in Q1 2017 exceeded the levels reached in Q4 2016 both in number of deals and total funding, however it fell short of the high from Q1 last year.

  • Q1 2016 was the second biggest quarter the Dutch FinTech sector has ever had with $116m worth of investments. This was largely down to a $100m debt financing round received by Amelo-based Qredits in January of that year.
  • There was a noticeable slowdown in the second half of last year with Q3 and Q4 combined figures falling short of the numbers recorded in Q2 2016.
  • Q1 2017 saw the Dutch FinTech sector receive $36m – more than the combined funding from the previous three quarters.

FinTech investments to Dutch companies grew 56.2% YoY, but funding was still below the record levels reached in 2014

  • 2014 was Netherlands’ highest year to date in terms of FinTech investments, with nearly $260m in funding. This record investment total was driven by a $250m investment round for Amsterdam-based point-of-sale startup Adyen.
  • There was a decrease of 63.7% for the total funding in 2015 when compared with 2014, although 2015 did receive 10 more deals.
  • Apart from the big deals to Adyen and Qredits, no other deal in the period received more than $11m. If we exclude those two deals from the analysis, the remaining 92 deals raised $189.7m combined, which represents just over a third of the total investments since 2014.

The Dutch FinTech sector is seeing more later-stage funding rounds

  • The proportion of seed deals has decreased each year from 2014 to 2016. Their share of total deals decreased 27% in the period.
  • Conversely, venture deals gained deal share in the period. Rising 16.4% since 2014 they now make up nearly a quarter of the total FinTech deals for the Netherlands in 2016.
  • In 2016, the largest investment was received by Utrecht-based software company Five Degrees, who raised $10.6m.

Infrastructure and Enterprise Software makes up over a fifth of the FinTech ecosystem in the Netherlands

  • Banking Infrastructure and Accounting comprise over half to the sub sector’s total active companies.
  • The largest deal to come in the sub sector to-date was for Amsterdam-based Banking Infrastructure firm Frontclear, who received $30m in February 2017 in a round led by FMO.

The number of active FinTech companies in the Netherland has tripled since 2010

  • The total FinTech companies in the Netherlands surpassed the 350 mark in 2015.
  • 2014 saw the most newly registered FinTech companies – 55
  • The rate of newly founded FinTech companies slumped by  47.2% last year and the trend continued in Q1 with only 3 companies being registered.

The Dutch FinTech ecosystem has expanded quickly in the past few years and now boasts 358 active FinTech companies. However, investments to the sector have failed to replicate the growth and the number of deals declined last year. There are positive signs in the opening quarter of the year with total funding exceeding the combined total of the previous three quarters.

The data for this research was taken from the FinTech Global database. More in-depth data and analytics on investments and companies in the Netherlands as well as across all FinTech sectors and regions around the world are available to subscribers of FinTech Global. ©2017 FinTech Global

 

 

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