Funding volume for fintechs still high

Despite fears of difficult times for companies, a lot of venture capital is still flowing into European financial start-ups. In the second quarter of 2022, investors invested a total of 5.5 billion euros.

Some fintechs are currently laying off employees to prepare for difficult times. However, an analysis shows that the financing of fintechs in Europe has not been so bad so far. In the second quarter, which ended on Thursday, almost as much capital flowed into European fintechs as before. This was reported by Finance Forward. The analysis was prepared by French VC Blackfin Tech.

According to the report, there has been an upward trend in venture capital for fintechs since 2021. In 2020, between 1.3 and two billion euros per quarter flowed into European tech companies. Last year, the total volume then grew to between 4.2 and 6.9 billion euros per quarter. The trend is still continuing, at least in the first half of this year. In the first quarter, six billion euros and in the second, 5.5 billion euros flowed into a total of 190 fintechs.

However, the survey does not disclose the conditions under which start-ups have raised new capital. In the case of the Swedish fintech Klarna, we can already see that the valuation is significantly lower. The valuation of the "buy now, pay later" provider is set to fall from 46 billion US dollars to 6.5 billion US dollars. It remains to be seen whether other financial start-ups will fare similarly.