The Portuguese fintech trade is rising at an accelerated tempo, with now over 100 firms working domestically, together with regional leaders Revolut and Monese, in line with Portugal Fintech’s 2019 trade report.
The report, which presents an outline of the trade’s progress and predominant traits of 2019, additionally features a choice of the 12 months’s “top 30 Portuguese fintechs.”
Out of the 30 firms, 70% are headquartered in Portugal, whereas the remaining are both double-based or based mostly exterior nationwide territory. Insurtech, and lending and credit score are the most well-liked segments, representing a mixed 34% of the 30 firms.
Virtually 80% of those firms function beneath a business-to-business (B2B) enterprise model, the analysis discovered, and 16 of them had been based over the previous three years, showcasing that the sector has simply begun taken off inside the previous few years.
These 30 firms have raised a mixed of greater than EUR 210 million from each nationwide and worldwide enterprise capital (VC) corporations. 67% of them are early stage (pre-seed to Sequence A) ventures, with 37% of them having raised lower than EUR 500,000, and 33% greater than EUR 2 million in funding.
Based on the report, fintech firms throughout the regtech and cybersecurity section have raised the best quantities of funding (40.7%), adopted by blockchain and crypto (37.9%).
High 30 Fintechs in Portugal in 2019
Based on the report, the highest 30 Portuguese fintech firms of 2019 encompass:
- Three funds and cash transfers startups: Swap, Ifthenpay, and EasyPay, all headquartered in Portugal;
- Three regtech and cybersecurity firms: Feedzai (HQ: USA), Loqr (Portugal) and Fyde (USA);
- 5 insurtechs: Coverflex (Portugal), Drivit (Portugal), Behavior Analytics (USA), Lovys (France) and Hold Guarantee (Portugal);
- Two capital markets and wealth administration firms: Advicefront (UK) and Cross (Portugal);
- Three private finance firms: ComparaJá.pt (Portugal), Doutor Financas (Portugal) and Hapi (Portugal);
- Three various financing firms: GoParity (Portugal), Raize (Portugal) and Seedrs (UK).
- 5 firms in lending and credit score: Maintain (Portugal), Itscredit (Portugal), Parcela (Portugal), Prazo.pt (Portugal) and StudentFinance (Spain);
- Three banking infrastructure and accounting firms: Reality.pt (Portugal), InvoiceXpress (Portugal) and Netinvoice (Portugal); and
- Three blockchain and crypto startups: Anchorage (USA), Coinvision (Portugal), and Utrust (Switzerland).
As a part of the analysis, the commerce group surveyed the 30 firms to raised perceive the state of the trade and the most important challenges they confronted in 2019.
Respondents cited participant cooperation and expertise as the best hardships confronted in 2019, and, as for 2018, they cited regulation as the primary ecosystem problem in 2019.
However, efforts have been made in these regards with 50% stating that they noticed enhancements in 2019 within the accessibility of Portuguese regulatory establishments, and 46% agreeing that it had grow to be simpler to work with incumbents in 2019.
Key fintech traits in Portugal
Based on Ricardo Macieira, nation supervisor of Portugal at Revolut, the nation is quickly rising as a “key fintech hub in Europe” with main tech occasions such Net Summit going down yearly, along with a being house to a “very tech savvy” inhabitants that’s eager on adopting new services.
Revolut, which opened its Portugal workplace in late-2019, says it now has greater than 270,000 customers within the nation. Right now, Portugal represents its 7th largest market in Europe for its retail enterprise, and the 5th largest for its enterprise providing.
Group Genesis, a specialised staff a part of legislation agency Morais Leitão, Galvão Teles, Soares da Silva, which focuses on directing authorized recommendation to rising firms and founders, notes that an growing variety of worldwide fintech scaleups like Revolut have been organising store in Portugal, citing the nation’s clear legislative framework and the favorable passporting guidelines within the European Union (EU).
In the meantime, consultancy agency Accenture says it has been working collaboratively with trade contributors together with modern startups and entrepreneurs, in addition to banks, insurance coverage firms, and organizations like Associação Portugal Fintech and Nova Faculty of Enterprise and Financial, to construct a number one fintech and insurtech ecosystem in Portugal with a selected deal with synthetic intelligence (AI).
“Portugal is more than ever well suited to be a key player in this new revolution and drive the future of AI in financial services, today,” the agency claims.