German financial start-ups secure €686m in investments 

German financial start-ups secured a record €686 million ($770 million) in investor financing in the first quarter, more than twice the amount in the same period of the previous year, according to figures from Barlow Consulting published on Tuesday.

Investors put around 77 per cent more into financial start-ups than in the final quarter of 2018, the last record-breaking period, chief executive Peter Barkow said.

Financial start-ups based on digital business models have created room for themselves alongside classical banking, representing competition in part but also options for cooperation.

In 2018, financial start-ups secured more than €1 billion in venture capital.

The first quarter figures revealed a decline by almost a third to 26 in the number of deals, indicating that investors were focussing on fewer successful start-ups.

Berlin’s online bank N26, which bases its model on smartphone banking, secured around €260 million in January alone. Last year insurers Allianz put money into the company.

Large sums also went to the automotive insurer named Friday, which offers policies based on the number of kilometres travelled.

Source: dpa