Cryptocurrency and Blockchain Industry Leads Fintech Investments in European Markets Despite Downturn
Summary:
Amidst a global fintech market downturn, the crypto and blockchain sector emerges as a leader in investments in major European markets, according to a report by Finch Capital. Despite a 50% drop in fintech investments in the EMEA region, the crypto industry stands out, capturing a significant share of investments in key markets such as the UK, the Netherlands, Germany, and France. The lending sector remains a strong competitor. Solid investor interest in the digital economy continues, with asset management firms adopting digital assets strategies. Some crypto companies, like CoinShares, report significant revenue gains.
The cryptocurrency and blockchain sector emerges as a leader in investment amidst the global fintech market downturn across major European markets, according to Amsterdam-based fintech venture fund Finch Capital's report "State of European FinTech." The report reveals a 50% decline in fintech investments in the EMEA region during the first half of 2023, with funding dropping from $27.3 billion in H1 2022 to $11.2 billion in H1 2023. Despite this, the crypto industry stands out, securing a significant share of investments in key markets. In countries like the United Kingdom and the Netherlands, the blockchain and crypto sector captured 28% and 35% of all fintech deals respectively in H1 2023. In Germany and France, similar sectors accounted for 27% and 29% of deals respectively. The lending sector, on the other hand, claimed the top spot in market share in Ireland and across the region in terms of deal volume, posing a strong competition to cryptocurrencies. Despite the overall decline, there remains solid investor interest in the digital economy. A recent report indicates that 24% of asset management firms have already adopted a digital assets strategy, and an additional 13% plan to do so over the next two years. Furthermore, certain crypto companies continue to report significant gains, with European digital asset manager CoinShares revealing a 33% increase in total revenue in Q2 2023 compared to the previous year's quarter.
Published At
9/13/2023 10:27:32 AM
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