June 13, 2018
Financial technology firms in Europe raised ~$3.13 billion across 150 deals that took place between January 1, 2018, and May 31, 2018. In total, there were 165 deals, out of which 15 were of undisclosed amounts.
The UK’s Paymentsense, Revolut, and Atom Bank, and well as French Lendix, were among the firms that raised the biggest amount of financing (counting in hundreds of millions of dollars). They are followed by Atom Bank, N26, PumaPay, eToro, and Oodle Car Finance. Companies from 24 European nations raised funds this year, with the UK having the most representation.
Out of 165 deals, almost half (49%) were made by UK companies; 10% of companies that raised funds were from Germany, 7% from France, 4% from the Netherlands, and 4% from Sweden.
Representing half of the companies involved in financing deals up to this point in 2018, UK companies also gathered the most money by value: in total, $1.53 billion were invested in FinTech companies from the UK this year. France bagged the second place with companies from the country of love attracting $415.7 million in financing, followed by Germany, Cyprus, and Gibraltar companies that scored $389.4 million, $148.5 million, and $117 million in total, respectively.
The analysis of 150 disclosed amount deals revealed that Lending startups in Europe attracted 25% of the total funding, followed by Neobanks/Challenger Banks (15% of the total funds raised), Payments (10%), Remittances (8%), Blockchain (8%), and InsurTech (7%).
In terms of dollar value, Lending companies in Europe attracted $770.6 million in financing deals, Neobanks/Challenger Banks – $459.5 million; Payments – $317 million; Remittances – $280 million; and Blockchain companies attracted $241.8 million in financing deals.
It’s interesting that while Lending companies raised the most funding, they are actually the second-most represented segment – with 25% of funds raised, Lending companies represent 14% of all companies.
There is more disparity in the representation and amount of funds raised by segment:
InsurTech is the most-represented segment: >18% of companies are InsurTech companies but raised only 7% of total funds. A closer look at the rounds explains why – the median funding round is $3.4 million, with the average just a little above $8 million. Out of 28 disclosed deals (two additional deals in InsurTech were not disclosed), 50% of companies raised less than $3 million, with the lowest amount being at just $142K.
B2B FinTech is the third-most-represented segment (8.7% of companies), but B2B FinTech companies are responsible for only 2% of the funds raised this year by European companies.
It’s also interesting that Remittance and Blockchain segments added 9% and 8% of total funds raised even though they were represented by just 6% and 5.3% of companies respectively.