Berlin is attracting larger share of FinTech investments but still remains far behind London

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

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