Investment record for German fintech startups: In the first quarter of 2019, more money was raised than ever before. A total of over 686 million euros flowed between the beginning of January and the end of March.
Compared to the first quarter of the previous year, the investment volume was doubled, so a study by the consulting firm Barkow ConsultingThe survey also shows that the current figure represents an increase of 77 percent compared to the previous record quarter — Q4 2018.
So what are the reasons for this enormous increase? Several unusually large investment rounds are likely the main reason. The smartphone bank N26 leads the way: In January, the company secured over €260 million. It's followed by Friday, a digital car insurer, which received a €114 million cash injection at the beginning of March. Wefox ranks third, followed by the interest portal Raisin with €100 million in financing.
Investment record with a bad aftertaste: Others are growing more strongly
To ensure transparency in the investment processes, the study authors add that the start-ups do not exclusively raise equity. In the case of Friday, for example, company shares were exchanged for media services. The new shareholders here are ProsiebenSat1 and the German Media Pool.
While the new investment record is a cause for celebration, the international outlook is sobering. Compared to other countries, Germany is still lagging behind. According to KPMG, Total financing volume in the financial sector in Germany is now even decliningHowever, KPMG's definition of a startup is very broad in this study. Furthermore, IPOs were also included in the survey.
