Funding volume for fintechs still high

Despite fears of difficult times for companies, a lot of venture capital is still flowing into European financial startups. In the second quarter of 2022, funders invested a total of €5.5 billion.

Some fintechs are currently laying off employees to prepare for difficult times. But an evaluation shows that so far, things aren't so bad for fintech funding in Europe. 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 evaluation was prepared by the 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 billion and €2 billion flowed into European tech companies per quarter. Last year, the total volume then grew to between €4.2 billion and €6.9 billion per quarter. At least in the first half of this year, the trend is still continuing. Six billion euros flowed into a total of 190 fintechs in the first quarter and another 5.5 billion euros in the second.

However, the survey does not disclose the terms on which startups raised new capital. In the case of the Swedish fintech Klarna, one can already see that the valuation is significantly worse. The valuation of the "buy now, pay later" provider is said to have just dropped from $46 billion to $6.5 billion. Whether other financial startups will fare similarly remains to be seen.