Brexit Boosts Fintech Deals In The EU

Brexit Boosts Fintech Deals In The EU

CBInsights reports that as a result of Brexit, France and Sweden now win most of the fintech deals in the European Union. UK still holds the first place (34%) but its share has fallen by 11% since 2014 when it was 45%.

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CBInsights reports that as a result of Brexit, France and Sweden now win most of the fintech deals in the European Union. UK still holds the first place (34%) but its share has fallen by 11% since 2014 when it was 45%.

France and Sweden took the most out of the situation and managed to increase their part of fintech deals by 5% and 3% respectively. In the United Kingdom, however, things are not as good. Since the start of Brexit. Startups claim that recruiting qualified staff from abroad will be an issue in the coming years. Furthermore, most of the fintech startups in the UK gained massive financial boost from the European Investment Fund, which will not be accessible anymore.

Apart from that, the total amount of technology investments is going up. Let us take for example insurtech. In 2015, the investments were $13 million but in 2016, they reached the level of $129 million. Experts expect that the numbers will be significantly higher in the end of 2017. What about the amount of capital raised by fintech ventures? CBinsigths predicts that by the end of this year the total capital shall be $4 billion. So far, the funds raised are doubling those in 2013.

Blockchain projects get more and more attention. The governments of Sweden, UK, Ukraine and Estonia launched their own technologies while private projects emerge in high numbers in Switzerland. This is so because the Swiss funding mechanism is decentralized, which of course guarantees limitless possibilities.

 

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