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European blockchain investment soars in 2018, still behind fintech

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Blockchain investment still lags behind fintech despite record-breaking 2018 Crypto Heroes

European venture capital investment in blockchain technology reached a new high in 2018, but financial technology companies recorded higher investment over the past 12 months.

European fintech investment still ahead of blockchain

According to Innovate Finance’s ‘2018 FinTech VC Investment Landscape report, cryptocurrency and blockchain companies in Europe experienced a series of significant deals last year, with four notable ones that raised over 300 million USD.

Paxos, a company that delivers blockchain solutions for financial institutions, raised roughly 65 million USD in May 2018. Another company raising a similar amount was Dfinity in a funding round in August last year. Dfinity is a blockchain-based computing project which is aiming to challenge Amazon and Google in the cloud computing sector. The highest amount raised by a blockchain firm was by SEBA, a Swiss-based company seeking to build a bank to offer cryptocurrency services to companies and investors. The company raised 103 million USD in September last year. The fourth significant funding was to Bitfury, a blockchain firm that develops software and hardware solutions to help organizations and individuals move assets across the blockchain. The firm ended an 80 million USD funding round in November 2018.

In Europe, the UK leads the way in terms of total capital investment. Fintech and blockchain companies in the UK raised over 1.7 billion USD in 2018. Germany and Switzerland came in second and third at 716 million USD and 328 million USD raised in funding respectively.

The top five deals in Europe consist of four fintech companies and one blockchain firm. Revolut, a challenger bank in the UK, raised 250 million USD last year. In second place is Wefox, a German insurance tech company which raised 215 million USD. The third and fourth spot went to N26 and Monzo, with the two challenger banks raising 160 million USD and 111 million USD respectively. SEBA occupied the fifth spot, with the Swiss-based company raising 103 million USD from VC investment in 2018.

China and the US lead the way in global fintech investment

Across the globe, fintech and blockchain companies raised over 36 billion USD from VC investors. The figure represents a 148 percent increase from 2017 and a 329 percent increase over the past five years.

China leads the way, with VC investment reaching 18 billion USD in the country. United States occupied the second spot with fintech companies raising over 10 billion USD over the past 12 months. The UK, India, and Germany complete the top five countries in terms of capital invested in fintech companies.


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