In partnership with Finch Capital, Dealroom just launched the State of European Fintech report, a deep dive into the key verticals of the biggest investment sector that has put Europe on the global map.
This report covers Fintech’s core verticals: companies disrupting Banking & payments, Insurance, Real Estate, and Enabling Financial Technologies.
Findings of the report:
- Fintech is Europe’s largest venture capital investment category. It receives 20% of all venture capital in Europe: a higher percentage than in Asia & USA.
- European Fintech companies have created over 2x more value than any tech sector in Europe.
- Traditional banks are mostly absent from big fintech acquisitions. The most viable paths to exit are IPO ($40B), sale to fintech ($34B), and private equity ($18B). But they are more involved via partnerships or by investing in minority stakes.
- Fintech has over the last 50 years been driven by the rise of the information infrastructure: After financial software, e-payments and digital challengers trends, we expect the next wave in fintech to be driven by AI and IoT.
- Enabling Financial Technology growth is being driven by the fact that financial institutions are the biggest spenders on software globally. We expect these institutions will double down on these technologies, particularly as AI/ML models mature and approach product market fit.