There is a lot of talk around about ‘fintech’ (technical applications for financial services) and in Germany the intersection of technical competency, a large financial sector, and venture funding are coming together to supercharge the sector.
Since 2013, investments have increased by a factor of 4, seed funding is growing, and a well defined hub is emerging between several localities (Berlin, Rhein-Main-Neckar, and Munich). All of this means that Germany could become one of the most dynamic clusters in Europe and a rival to similar clusters in the UK and the US.
This is certainly the case in equity crowdfunding, which saw the establishment of 150 portals and approximately $70 million raised. Local placements in Berlin, Rhein-Main-Necker region, and Munich have seen solid funding rounds. Most significantly the Rhein-Main-Necker region, which has proximity to the rest of Europe, many financial institutions, and is supportive of the investor landscape.
So, will fintech become GermTech? What this space…
Photo credit: “iStock.com”. Material used in the preparation of this article has been drawn from Crowdfund Insider.