One study The bank comdirect sees the fintech industry on the right track. In the location rankings, Munich ranks second in Germany, behind Berlin.
The study counted 699 financial startups in Germany as of September 2017. Since 2015, the number of companies nationwide has increased by one-third.
In the first nine months of 2017 alone, fintechs in Germany raised more than half a billion euros in capital, totaling €579 million. For the entire year of 2016, the figure was €624 million.
An end to the fintech boom?
Despite all the growth, the growth rates in 2017 failed to keep pace with previous years: While investment volumes likely increased in 2017, they did not do so as strongly as in previous years. The slowdown in growth in startups is even more pronounced: In the first three quarters, the study counted only 30 new financial startups.
“The great fintech euphoria may be over, but an end to growth is not in sight,”
says Arno Walter, CEO of comdirect. For him, this development is a sign of increasing consolidation:
“The fintech sector in Germany is normalizing at a high level.”
Munich ranks second among Fintech hubs
In terms of both the number of investment rounds (32) and the number of startups (84), Munich ranks second behind Berlin in the ranking of German fintech hubs. In terms of the number of startups, Frankfurt moves between the Bavarian and German capitals, while in terms of invested VC volume, Hamburg pushes Munich into third place. Comdirect spokesperson Geerd Lukassen writes in Blog the bank:
“The PropTech, financing and InsurTech sectors are particularly well represented in the Bavarian capital.”
Overall, Munich ranks second among Fintech hubs in Germany — behind Berlin and ahead of Frankfurt and Hamburg, which share third place.
