After Only 6 Months, European Fintech Investment Reaches Record High in 2021

June 23, 2021
Sarah Gormley

Having only been through half of 2021, it is amazing to be able to say that Europe has already broken the record for annual investment in fintech! The European tech sector has surpassed the amount that it made in 2020 as a whole. 

Fintech investments reached a three-year low at the beginning of the pandemic when the government began to shut down and investors took stock, giving people very little hope for a prosperous future in the fintech sector. Not only did the fintech sector bounce back, but it has had amazing, unexpected growth. Within the last 6 months, European fintechs have raised €10.4 billion. The previous record for European fintechs was €9.3, which was across all 12 months of 2019. 


What European countries are we to credit? 

The Swedish buy-now-pay-later firm Klarna has raised the most money for the fintech sector by a long shot. This fintech company has raised €639 million in 6 months — that is amazing! Klarna is accompanied by Trade Republic and Salt Pay as the three highest money makers for the sector. 


Foreign Investments

As fintech in Europe expands, other countries are starting to want in on fintech’s profits. American and Chinese investors have been flooding the fintech investment sector due to the amazing success that first-generation fintechs have had in the last few months, causing a great inflow of cash. The extensive growth the fintech sector has had in the last six months shows that the odds it will maintain its spot as the most funded area in all of the European tech are promising. 


Cryptocurrency and DeFi

Cryptocurrency and decentralized finance are the two sub-sectors that should be given the most credit for their impact on investments reaching a record high. Up 300% from 2019, crypto startup investments have already hit €1.2 billion in Europe. A large part of this is the rise and fall of Bitcoin investments.



The final sector of fintech that needs to be credited is insurtech. While its additions are smaller compared to others, investments have reached €1.8 billion this year already and are predicted to reach over €1.6 trillion by 2024. 


Breakdown of European countries leading the industry

The United Kingdom has been the leading source of fintech funding in Europe for many years — this changed in 2021. Germany, Sweden, and France have had record years for investments: Germany hit €2.1 billion, Sweden hit €1.6 billion, and France hit €1.4 billion. While these numbers are still low compared to the UK’s €4.3 billion, the UK has made up over 50% of Europe’s fintech funding the last few years — this year it has made up 41%. 


The European continent is becoming a huge fintech hub, attracting many large companies and investors from all over the globe. With 6 months left in the year, it will be interesting to see how the fintech sector grows: Will it continue to grow exponentially throughout the rest of 2021, or will it peak and decline?




“The State of European Insurtech 2021.”, 14 June 2021, 

Woodford, Isabel. “European Fintech Is Having a Record 2021 – and It’s Only June.” Sifted, 15 June 2021, 

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