Skyrocketing Fintech Growth
Growth in Germany’s fintech sector is skyrocketing.
According to a recent study by Düsseldorf-based Barkow Consulting, investment in German fintech recorded impressive year-on-year growth in 2018 of 55 percent, its fastest growth rate in three years.
The value of investments in Germany’s nearly 800 fintech companies also broke the billion-euro mark for the first time in 2018, reaching EUR 1.1 billion for the year and EUR 353 billion for the fourth quarter alone. What’s more, 2019 has also gotten off to a strong start.
For example, in January, the Berlin-based mobile bank N26 completed another round of financing worth some EUR 260 million – the largest sum ever collected by a German financial startup and enough to make it the first German fintech “unicorn” (meaning a privately held startup valued at USD 1 billion or more). In addition to several existing investors, the funding round included the New York-based private equity firm Insight Venture Partners and GIC, Singapore’s sovereign wealth fund. Founded in 2014, N26 claims to have 2.3 million customers in 24 European markets and plans to expand to the United States.