Europe’s fintech industry has developed into a global force in the last few years, with young companies such as peer-to-peer lender Funding Circle and money transfer startup TransferWise reaching unicorn status and becoming market leaders in short order. The clamour for European fintech isn’t just limited to the big players, however. Less than two weeks ago, for example, Berlin-based Earlybird led a round into Switzerland's cryptocurrency exchange ShapeShift. Since 2015, nearly €3.1 billion of venture capital has been invested across 860 European fintech deals, PitchBook Platform data reveals. By comparison, the years 2012 to 2014 yielded 339 deals worth €498 million.
It should be noted that while overall European venture activity (sans fintech) declined from 4Q 2016 to last quarter in both deal flow (-19%) and deal value (-23%), the fintech sector saw a massive increase in invested capital, a figure that jumped from €293 million to €576 million during the same timeframe. The boost was driven by Funding Circle’s £82 million financing in January, as well as iZettle’s €60 million Series D extension the same month.
With 75 early-stage fintech deals completed in Europe so far this year, the industry is set to sustain its momentum.