Deep Ecosystems, a Germany-based accelerator for ecosystem tasks, have launched its 7th version of the Startup Heatmap Report, rating Europe’s prime 50 hottest startup hubs within the continent.
The rating is predicated on a survey that polled greater than 24,000 pre-selected founders equally distributed over Europe to know their sentiments on native startup landscapes. Outcomes had been compiled in a report, giving an in depth view of every European tech hubs within the area and that includes insights about investments, internationalization patterns and founder sentiments.
This yr once more, Berlin and London ranked on the prime of the checklist, chosen by European founders as the most effective cities within the continent to launch a startup. These two areas had been acknowledged for his or her business-friendly rules, quick access to funding, and dynamic startup ecosystems. They had been additionally named amongst Europe’s prime 5 fintech hubs.
Berlin: Europe’s prime tech hub
Berlin obtained a stable 37% of founders’ vote, indicating that greater than each third founder in Europe might think about beginning their firm within the German capital. Respondents highlighted the town’s thriving startup group, robust assist community of educational establishments, giant corporates, and modern communities, in addition to rising availability of capital.
Not solely is Berlin founders’ most well-liked location in Europe to launch a startup, it’s additionally a significant fintech hub within the area that’s ranked by Deep Ecosystems as one among Europe’s prime 5 fintech ecosystems. Equally, the International Fintech Index 2021 listed the German capital at first place within the European Union (EU) final yr, forward of Amsterdam, Stockholm and Frankfurt.
The Berlin startup map reveals over 900 fintech corporations within the metropolis, amongst which unicorn startups N26, a digital financial institution price US$9.25 billion, Commerce Republic, a neobroker valued US$5.36 billion, and Wefox, an insurtech startup price US$4.5 billion, knowledge from CB Insights present. N26, Commerce Republic and Wefox are additionally Berlin’s most beneficial personal corporations, showcasing the town’s vibrant fintech scene.
This yr, fintech funding within the metropolis has thus far remained robust, with giant rounds being reported in H1 2022. These embrace Wefox’s US$400 million Sequence D, Commerce Republic’s EUR 250 million Sequence C extension, Payhawk’s US$100 million Sequence B, and Vivid Cash’s EUR 100 million Sequence C.
London: a fintech powerhouse
After Berlin, London took the second place within the rating, chosen by 33% of the founders polled by Deep Ecosystems as one of many prime two locations they may think about beginning a tech firm in. Respondents identified London’s business-friendly rules, trade networks and quick access to funding as the town’s largest strengths.
Like Berlin, London was additionally acknowledged for being one among Europe’s prime 5 fintech ecosystems, acknowledged by the group for its tradition of creativity, supportive regulators, and a pipeline of various digital and monetary expertise.
Knowledge from Metropolis of London Company, Findexable and Mambu, present that London hosts a large variety of fintech corporations, with 1,230 corporations headquartered within the metropolis. The determine implies that practically half of the UK’s fintech corporations (over 2,500) are based mostly within the capital metropolis.
Additional demonstrating London’s fintech management, knowledge from CB Insights present that of the 36 tech unicorn startups headquartered within the metropolis, 24 are fintech corporations, amongst which Checkout.com (price US$40 billion), Revolut (US$33 billion), Blockchain.com (US$14 billion), Rapyd (US$8.75 billion) and SumUp (US$8.5 billion).
In 2022, traders continued to stay bullish on the native fintech trade, with quickly rising startups closing large rounds of funding. Checkout.com, a global cost platform, raised US$1 billion in a Sequence D funding spherical, GoCardless, an account-to-account funds specialist, closed a US$312 million Sequence G, and PayFit, a payroll and human assets (HR) software program supplier, raised EUR 254 million in a Sequence E. Each GoCardless and PayFit reached unicorn standing after closing their fundraising rounds.
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