A closer look at what's driving fintech funding and deal activity across Europe.
In 2021 so far, fintech companies in Europe have already eclipsed 2020’s full-year funding totals.
Our Europe-based fintech funding update digs into the deals driving funding activity across the continent and looks at key trends across sectors including payments, banking, insurance, services for small- and medium-sized businesses (SMBs), and more.
Key Takeaways:
- Funding to Europe-based fintech companies in H1’21 surpassed 2020’s full-year total. Europe-based fintechs raised a record-breaking $12.8B in H1’21, nearly 1.5x higher than in all of 2020. In Q2’21 specifically, deal activity fell by 8% quarter-over-quarter (QoQ) to 148 deals, while funding grew by 30% to reach a record $7.2B, driven by companies raising more mid- to late-stage mega-rounds.
- Germany-based companies nearly reached UK’s funding high among European countries in Q2’21. In Q2’21, UK fintech companies raised $2.1B in funding, only 2% more than Germany-based ones. Of the 5 largest funding rounds in the quarter, two went to companies based in Germany.
- Insurance and wealth tech companies led funding growth in Q2’21. Across Europe, companies in insurance and wealth management saw the biggest funding gains among fintech sectors. Insurance tech companies raised a record-breaking $1.8B, up over 400% QoQ, while wealth tech companies raised $1.3B in funding for Q2’21. Banking companies led the quarter in deal volume and growth at 34 deals, up 70% QoQ.