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Insurtechs Led German Fintech VC in 2019

Insurtech startups in Germany raised a report of EUR 442 million in funding in 2019, up a staggering 216% from EUR 140 million the earlier yr. The determine made insurtech essentially the most profitable section inside Germany’s fintech sector, based on an evaluation by consulting firm Barkow Consulting.

Insurtech corporations accounted for 26.4% of all funding going in direction of German fintech corporations in 2019, surpassing aggregation, wealtech and proptech.

2019 noticed a number of key insurtech offers. Wefox Group, the Berlin-based insurtech firm, raised US$235 million in a Collection B funding spherical, reaching unicorn standing. Frankfurt-based Thinksurance, which has constructed a platform for insurance coverage distributed to digitalize your complete industrial insurance coverage distribution course of, closed a EUR 13 million Collection B funding spherical in October. And Friday, a specialist digital automotive insurer, raked in EUR 114 million in its newest spherical of financing in March.

Moreover insurtech, a few of 2019’s key fintech offers in Germany included N26’s US$300 million Collection D funding spherical and Raisin’s US$114 million funding spherical.

After insurtech, Barkow Consulting names the finance aggregation class because the second most profitable fintech section in 2019, with startups within the discipline, which embrace challenger banks corresponding to N26, Penta and Tomorrow, elevating EUR 433 million in funding and representing 25.5% of all German fintech funding in 2019.

In the meantime, proptech misplaced its momentum final yr, dropping from the highest spot in 2018 to the 5th place in 2019, the research says. In 2019, proptech corporations raised EUR 198 million, in contrast with EUR 241 million in 2018.

German Fintech VC by Class, Barkow Consulting, February 2020

The Barkow Consulting research echoes a separate report launched final yr by Oliver Wyman, which highlighted Germany’s quickly rising and maturing insurtech sector. In response to Oliver Wyman’s third challenge of InsurTech-Radar 2019, Germany was dwelling to 134 insurtech corporations, as July 2019, up from lower than 80 in 2014.

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German fintech VC

2019 was a report yr for German fintech enterprise capital (VC) on most measures, based on Barkow Consulting, with fintech startups elevating greater than EUR Three billion in funding, together with fairness enterprise capital funding, debt, and merger and acquisition (M&A).

Fairness VC funding reached a brand new report of EUR 1.7 billion, up 44% year-on-year (yoy), and the variety of fairness VC offers rose by 8% yoy to 141.

In 2019, fintech accounted for greater than 1 / 4, or 27%, of all German fairness VC, showcasing the sector’s continued significance throughout the German startup ecosystem.

BC Fintech Money Map- FY 2019 Venture Capital Review, Barkow Consulting, January 2020

BC Fintech Cash Map- FY 2019 Enterprise Capital Overview, Barkow Consulting, January 2020

German startups raised EUR 6.2 billion in 2019, a 36% improve in contrast with the earlier yr, based on a latest report by EY. Berlin startups acquired the lion’s share, elevating almost EUR 3.7 billion. Berlin is adopted by Bavaria with EUR 1.5 billion, North-Rhine Westphalia with EUR 268 million, and Hamburg with EUR 254 million.

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Jung Min-seo

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