Over the last few years, the European fintech scene has seen tremendous growth. According to the State of European Fintech 2019 report, fintech is Europe’s largest venture capital investment category. It received 20% of all venture capital in Europe – a higher percentage than in Asia & USA.
And the COVID-19 crisis hit. The State of European fintech report for the current year (2020) states that overall, fintech is a resilient European tech growth engine for now. European fintech funding by VCs and PE firms in H1 2020 is reported to be down by around 10%, but when corrected for Government funding it is up 20%. The reports also predict that raising funds could become more selective and may drop in Q4 and 2021.