Investors and European financial giants increasingly look more towards those startups that operate in the industry of financial technologies or fintech. ‘CB Insights’ risk capital information platform has summarized data about investments of the biggest European banks during the period of 2012 – 2017.
In the first quarter of 2017, fintech companies financed from European risk capital received 73 investments in the total amount of USD 667 million. If investments are continued at the same rate, the amount of transactions is anticipated to exceed the results of 2016 by 57%. This year, the total amount of investments in the European fintech companies may exceed USD 2.6 billion.
European banks most actively
invest in startups, which operate in the development of blockchain and
regulating technologies, loans and payments, as well as which develop software
and financial and property management solutions. 70% of investments have been
received by American fintech startups.
In Europe, the main role is played by big banks, which every year continue to invest in fintech startups around the world. Spanish bank 'Banco Santander' has been the most active bank in this respect during the recent five quarters. It has established its own risk capital company ‘Santander InoVentures’, which, in turn, has made 13 investments in 12 companies. The biggest contribution is the round of E series investments in the amount of USD 135 million in the ‘Kabbage’ platform for lending to small companies.
The biggest investment from banks has been received by R3 startup. It is established by a consortium of financial service companies, which develop forms of usage for applications of blockchain technologies. In the second quarter of 2017, this company concluded the investment round for the attraction of USD 107 million, in which almost all of the biggest European banks were involved.
The biggest transaction of this year up to now is the round of C series investments in the amount of USD 63 million in 'Symphony Communication Services', which is a communication and cooperation platform for professionals of the financial services industry. This investment has increased the company value to USD 1 billion, placing it in the unicorn category of startups.