FinTech Silicon Valley Jobs

From Europe: Brace yourself; Finch Capital’s new State of European Fintech report warns of 2021 fallout

Radboud Vlaar, managing partner at Finch Capital says, “Although the 2020 situation looks good at first glance, European Governments have provided a huge amount of support for fintech startups. This support offset the decline in institutional funding but this was a one-off initiative.

In the next six to 12 months, startups and scale-ups will face a harsher market test for raising additional funding due as the government funding slows and VCs funds get maxed out, focusing remaining fund capacity on their winners.”

Here are some of the key findings of the State of European fintech report for 2020

  • 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%. This is because the funding databases only record publicly announced equity rounds, while most government funding went in as a convertible debt note and so was not disclosed.
  • As per the Finch Capital team, the impact of the lockdown on the fintech sectors was in line, except for payments and mortgages that both went up, contrary to what they had predicted. For payments, travel rebounded faster than expected and ecommerce skyrocketed 210%, as brick and mortar shops closed and people were stuck at home. 
  • Challenger banks (less travel and FX) and Commercial Real Estate (drop-in use of offices, shops, etc). Trading firms benefited from the volatility, and InsurTech and Enabling fintech (such as AI) performed as expected with continued strong demand for digital solutions.
  • Analysis of the top 50 European fintech hiring and firing, showed startups took this chance to reevaluate cost inefficiencies. With the help of government support programs, they reduced headcount on sales teams, given limited in-person sales meetings, and increased customer support.
  • The team expects the next 12 months to be dynamic as raising funds could become more selective and may drop in Q4 and 2021. This will be a harsh reality for the many shake out and down round candidates whose runway got extended into 2021.
  • European fintech M&A momentum hindered by lack of big bold buyers and fragmentation: Despite the M&A boom in the US, Europe lacks big-ticket M&A buyers for fintechs, and challenger banks in particular. Read more via Silicon Canals

Pemo Theodore

Pemo is a Media Publisher & Event Producer. She is CoFounder/CEO Silicon Valley TV She is the Executive Producer of FinTech Silicon Valley & organizes Bay Area FinTech meetup: Silicon Valley FinTech meetup & Blockchain Music meetup with almost 3k members. She has produced Silicon Valley Events for Investors & Startups 7 years. She video interviews venture capitalists & angel investors & FinTech experts. She partners with videographers to cover San Francisco Bay area startup conferences & meetups with livestreaming, video & foto packages Silicon Valley TV She is based in Silicon Valley & has been involved in online business for 14 years. She has been in small business for 46 years in Ireland, London, Canada & Australia. She also published a free ebook (the findings of 1 year research from VCs, angels & women founders) “Why are Women Funded Less than Men? a crowdsourced conversation” She was TheNextWomen‘s most prolific contributor of 2011. Silicon Valley TV has been noted as a platform for supporting high growth women led companies in Huffington Post

SUBSCRIBE FinTech Silicon Valley Jobs youtube

Mailchimp Signup Form

Follow us on Twitter

%d bloggers like this: