In 2021, a startup was launched in Europe, in which investments exceeded ten billion dollars. To date, there are already three such projects in Europe. Experts say that frenzy of FinTech sphere has already swept entire continent and will manifest itself in more than one such large-scale project. Fintech business in Europe is an opportunity not just to realize your commercial plans, but to become a member of one of the most prosperous and developing European communities.
Three billion-dollar startups, Checkout, Revolut and Klarna, were founded and launched in EU. All of them work in FinTech industry. To date, about 19 more firms can also receive this fortune, which is closely monitored by the entire European community. The rapid increase in the number of FinTech projects in Europe that have been so valued demonstrates continent’s great role in functioning of world’s fiscal spheres, particularly, payments industry, banking, trade and e-commerce.
According to reports received, 2021 broke all records for venture FinTech capital organizations. This clearly indicates that the industry is steadily developing and widening its influence.
The total amount invested by fintech venture capital holders was about $70 billion. Basically, these are enterprises focused on large public offers, for example, Coinbase. European capital output amounted to approximately 20% of worldwide total.
2021 was a record gap for start-ups across the EU, with the largest number of companies crossing the one billion threshold. Now the number of such enterprises has become even greater. In addition, almost a third of these firms – about 39 – operate in the financial sector. This has contributed to FinTech direction becoming one of most essential industries in EU.
While relations between EU and UK are rather uncertain, increase in Britain FinTech projects was a great addition to European ecosystem.
Entire UK has been working tirelessly to involve FinTech investors, even with blur threats that Brexit carried. Consequently, Britain took leadership in funding allocated to FinTech projects, surpassing Germany by more than twice.
Establishing a Fintech business in Europe is an opportunity to join the rapidly developing technological scale of the continent and get at your disposal a qualified talent pool. For the most part, FinTech projects are concentrated in Estonia, Ireland – such large structures as Stripe, Coinbase, Payoneer – and Lithuania. These states are a direct “means” for an entrepreneur to achieve an early European expansion and expand the reach of his audience to the inhabitants of the entire continent.
Even large American corporations are trying to increase their influence in Europe, as they realize attractiveness’ strength of European FinTech companies. In particular, US organizations are trying to spread their e-commerce offers and build their sales market in Europe.
Among other things, Covid-19 and its consequences have become a kind of catalyzer for digitalization of the sphere of financial products. An increasing number of firms have gone online, enabling them continuing interacting with customers in the post-pandemic conditions. Thus, ready company with soft in Europe is also a profitable and common option.
At the moment, despite the fact that certain areas are still affected by the crisis, Fintech is flourishing. Venture capital organizations are rapidly increasing their income, relying on European technological solutions in Europe. We can safely say we are on threshold of “golden age” of European Fintech.
If you have any questions regarding the FinTech environment in the EU or would like to set up your own firm, please contact us. We’ll select for you ideal Fintech company for sale in Europe and help you make a profitable deal.
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