Fintech VC activity returns to pre-2021 levels in DACH

Venture capital dealmaking in the DACH region’s fintech sector has pulled back but is registering its second-best year to date.

A total of 191 deals worth €3.2 billion have been completed in the sector across Germany, Switzerland, Austria and Liechtenstein this year, according to PitchBook data. At this pace, activity is expected to fall short of 2021, which saw 230 rounds totaling €4.5 billion.

 

 

Despite annual figures coming in lower, Q2 2022 was the DACH fintech sector’s best quarter to date in terms of capital raised, and Q1 saw the highest deal count of the past five years.

Trade Republic’s €1.09 billion Series C accounted for much of Q2’s total capital raised, which stands at €1.8 billion. This quarter has seen a marked drop in both deal count and value compared with the prior one, but is registering similar levels of activity compared with the same period last year.

Fintech has been significantly affected by the VC downturn as less consumer spending and rising interest rates put pressure on activity. Last year saw an abundance of capital flow into fintech, which was characterized for its outsized deal sizes and lofty valuations.

However, fintech remains one of the region’s most active verticals for VC dealmaking. It currently accounts for 9.2% of overall deal value and 7.5% of the region’s total number of rounds this year. Notable fintech deals for this year also include Taxfix’s $220 million Series D, led by Teachers’ Venture Growth, and revenue-based financing specialist Re:cap’s $115 million seed investment.

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