Venture Capital Investment in FinTech: A Visualisation

Right after the 2008 World Financial Crisis, a new sector has dominated the financial industry scene. We’re talking about the FinTech sector. The financial technology industry, an ensemble of financial services that span from banking to loans to insurance technology, regulatory technology, payments, mobile banking, among other types of technology has grown immensely in the past decade, and we appear to have entered the apex of this growth right before the start of the year 2020.

But what has been the impact of FinTech on job creation, money transfer, consumer experience, taxation in Europe and Switzerland, and in various other areas of society?

To help draw some interesting conclusions and answer a few of these questions, visualising the data on investment in the financial technology industry can be extremely helpful.

In the EU FinTech map and graph we can clearly observe the decline in investment in the UK following the divisive 2016 Brexit vote. The reason for the decline could be the uneasiness in investing money in the UK when the situation is uncertain at a political level. Yet, financial trends suggest that this decline, which reflects data based on venture capital investment, is perfectly in tune with a consolidating industry, where the investment comes more from later rounds of funding.

The decrease in capital invested is still most certainly due to investor’s uncertainty. The changes in the banking, insurance and loaning industries are shaking the foundations of what used to be regarded as a solid sector before the 2008 WCF.

In this climate, one of the most interesting insights the map offers is the slow but steady rise of Germany as a dark horse in the FinTech sector. Germany has long been second to the UK in financial technology investment and start-up creation, yet there could be a shift in trends that might make Germany the leading European power in this booming industry.

The UK has always attracted new business through well-placed regulations aimed at facilitating the creation of new opportunities for all. Separation from the EU and the subsequent immigration policies that may be implemented could drive international talent away from the British territory.

To have a better understanding of the data, you can check the below interactive map and time graph:

About the author: Nicola Clothier is CEO of Accurity GmbH, a Swiss-based employment service provider. Nicola has an Honours degree in English Literature from Stirling University and more than 20 years’ experience in Swiss employment, and personnel leasing up to executive level throughout Europe.