European fintech funding drops to €367m in October 2020
Following a rollercoaster 2020, the amount of VC funding flowing into Europe’s fintech sector seems set to reduce significantly in Q4 2020. VC investments into Europe’s fintech sector totaled €367m across 44 deals in October 2020.
According to the research data analyzed and published by Comprar Acciones, it was one of the lowest monthly figures in 2020 seeing as the monthly average since January 2020 was €657m.
Globally, fintech startups raised a cumulative $3bn across 208 deals in October according to GoMedici. Compared to September 2020, there was a 54.4% month-over-month (month-on-month) decline in value and a 19.6% drop in transaction volume.
US Accounted for 60% of Global Fintech Funding Value in October 2020
In September 2020, European fintech companies received $1.7bn in funding, while in October 2019, the figure was €1.1bn.
A key reason for the October 2020 slump was the fact that there were no deals worth more than €50m in that month. The highest value deal was Primary Bid’s Series B funding round worth £38.5m. However, the number of deals was at par with the 45 deals posted in October 2019.
In Q2 2020, Europe received a total of €1.7bn in funding while in Q3 2020, the figure increased to €2.6bn. That was a significant drop from the €5.6bn reported in H1 2019 according to McKinsey.
Moreover, the highest VC deal in the first 10 months of 2020 was Klarna’s $650m. N26 had the second highest at $570m while Revolut had $550m, taking third place.
Globally, the US took the lead in October 2020 with a 59.8% share of global funding value in the fintech sector. According to S&P global, US-based startups raised 30.2% more in H1 2020 than they did in H1 2019. On the other hand, Asia Pacific raised a cumulative $3.9 billion in the first nine months of 2020, marking a 46% decline year-over-year (YoY).
The full story, statistics and information can be found here:https://compraracciones.