Fintechs in Portugal rake in €275 million in investment
The Portugal Fintech Report 2020 indicates that despite the pandemic Fintechs in Portugal are continuing to attract a growing number of investors and are consolidating sales.
Fintechs, technology startups operating in the financial area, have grown year-on-year. The report published on Thursday shows that the Top 30 fintechs in Portugal have already attracted €275 million of investment, Of this amount, 30% of financing on average was raised from international investors.
The year 2020 has been atypical for many activity sectors because of the pandemic. However, according to this study, the fintech segment continues to grow, and this growth is evident from consolidated sales.
Moreover, the document shows that over the past four years (2017, 2018 and 2020), 2018 was the most popular year to launch a finch and 17% of these companies in Portugal were set up that year.
And despite the situation caused by the pandemic, 11% of fintechs were created this year. Another indicator shown in the document is that despite the vast range of activities in the fintech segment, in Portugal the predominant areas: money and payment transfer services and insurtech (an area related to insurance) and crypto currencies.
Furthermore, around 40% of fintechs are in the seed phase, in other words they have already taken their first steps but are still new companies in need of investment.
In addition, these are generally micro and small companies with 69% of these fintechs employing 20 staff of less.
The majority of these fintechs in Portugal are located in the Lisbon region, followed by Porto and Braga since these locations have considerable human resources who are well qualified to work in the fintech area and, more specifically with financial and insurance entities.