In the second quarter of 2016, the investments received by VC-backed German financial technology companies, have been 80% higher than those for UK ventures, and its fintech ecosystem is now growing at a good pace. According to a new report from CBInsight and KPMG International, in Q2 2016, the funding activity on fintech startups slowed compared to Q1, which was under all aspects a record quarter in North America and Asia. However that’s not applicable to Europe, where despite all the concerns of the Referendum vote, investments have grown again, with $369 million raised across 43 deals, and with Germany largely responsible of this increase, with investments that grew from $107 million in Q1 to $186 million in Q2.
The UK paid for uncertainties of the Referendum vote, which now represents a challenge and an opportunity for the whole European market. We agree with Anna Scally Partner, Head of Technology, Media and Telecommunications, and Fintech Leader, at KPMG in Ireland, when she says that: “Market access and the ability to passport services across the EU are hugely important for fintechs, regardless of their origin or stage of development. Post-Brexit, maintaining a pro-business approach in Europe is critical and these issues will likely feature strongly in discussions between the EU and UK.”
The industry is now growing and evolving, not just in Europe but all over the world. Germany is building up what it seems to be a solid financial technology ecosystem, with the appetite to involve key cities and not just a single location, and it is now well positioned to play a bigger role in the financial technology industry in the future.
Read more on Crowd Valley News.
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