According to the management consultancy, the German fintech industry Barkow Consulting Last year saw a record. Fintech investments nearly doubled compared to 2018.
A total of €3.033 billion flowed into German financial startups through 184 deals. For the first time, the value, as determined by Barkow Consulting, exceeded €3 billion.
Equity deals dominate fintech investments
The number of deals was slightly lower in 2018, at 153. The volume of fintech investments reached €1.585 billion. This represents an increase in the average deal volume from €10.4 million in 2018 to €16.5 million in 2019. The increase in investments was driven in particular by a few particularly large deals. The ten largest deals of the year combined for more than €1 billion in capital. This corresponds to 61 percent of the total investment volume.
Traditional equity investments also reached a record high at €1.7 billion. According to management consultants, the fintech sector secured more than one in four equity investments in Germany.
Munich is Fintech runner-up
A previous study von Barkow, together with Comdirect, also provided insights into the leading fintech locations in Germany. In terms of both the number of financial startups and the number of new companies founded, and the amount of venture capital invested, Berlin clearly ranks first in a nationwide comparison. Munich and Frankfurt follow roughly equally in terms of the number of fintechs and new companies founded.
In the end, Munich clearly emerged as the fintech runner-up in the comparison: In terms of both the amount of venture capital invested and the number of VC rounds, Munich is well ahead of the metropolis on the Main River: Almost six times as much capital flowed into the Bavarian capital as into Frankfurt's fintechs. Hamburg came in fourth.
