The online broker Trade Republic is a German fintech that raised large sums of money in 2021. (picture alliance / dpa)
Financial start-ups in Germany have experienced a record year in 2021, according to a new study. From January to the end of September, financial start-ups attracted 3.2 billion euros in venture capital from investors, according to an analysis carried out by the comdirect bank with consulting firm Barkow Consulting and Commerzbank investor Main Incubator. This means that this year is already 1.5 billion euros above the entire record year 2019 as of the reporting date.
According to the report, there were 137 financing rounds up to the end of September, only a few deals short of the previous record year of 2019, which saw 150 rounds. There is also an upward trend in terms of the founding of start-ups, with 84 new start-ups from January to the end of September this year. In total, more than 1,000 financial start-ups were counted in Germany for the first time.
"The sector is experiencing a second spring more than 15 years after the emergence of the first German fintechs," said Alena Kretzberg, divisional director of comdirect and digital banking at Commerzbank. "Digital financial offerings are benefiting immensely from pandemic changes in consumer and banking habits."
Among the most successful fintechs are interest rate comparison portals and investment robots that invest assets broadly. But digital banks, online brokers for securities purchases via app, and insurance companies have also seen strong growth. In 2021, the online broker Trade Republic, the digital insurer Wefox, the asset manager Scalable Capital, and the Berlin-based Solarisbank raised large sums of money.
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