Berlin is the place for fintech
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There are approximately 32,000 fintech companies worldwide, with over 400 of them located in Berlin in 2021, as per the Berlin Startup Map. Moreover, Berlin is ranked as the 6th best global fintech hub and second best in Europe (after London). This achievement is well-deserved. In this article, we delve into the significance of Berlin as a fintech hub and its promising potential.
Three reasons why Berlin is the fintech powerhouse
Flourishing startup environment
In 2022, Berlin witnessed the establishment of 501 startups, accounting for a fifth of the total startups in Germany. The city's startup landscape is remarkably diverse, encompassing startups from industries like enterprise software, health, e-commerce, transportation, robotics, gaming, and more. This dynamic and innovative environment has not gone unnoticed beyond borders. Venture capitalists continue to see Berlin as the ultimate startup hub, despite external challenges like rising interest rates and falling banking valuations. Remarkably, a staggering 9.9 billion euro have been invested in Berlin's startup scene! The city has secured six out of the ten largest financial packages in Germany.
Fintechs represent the second-largest sector
The fintech sector in Berlin has left an indelible mark, boasting over 250 startups and creating over 9,000 local jobs. It stands as the second-largest sector in the German capital. Notable players like Solarisbank, N26, Raisin, Finleap, and Trade Republic have catapulted Berlin's fintech scene to new heights. In 2022, the city's fintech landscape attracted a whopping total funding of 1.3 billion euros. Notably, the cloud-based fintech platform Mambu garnered significant attention in 2021 with a valuation of 5.3 billion USD.
Support by the Berlin government
Recognizing the potential of startups for a prosperous future, the Berlin Government has taken tangible steps to foster the city's startup environment. Berlin Partner, the business development agency, plays a crucial role in nurturing startups with its dedicated team. The city offers diverse funding programs supported by private and institutional actors. The collaboration between startups and medium-sized companies continues to grow, delivering mutual benefits. There is even talk of establishing a dedicated "House of Finance" (stay tuned with our newsletter with more information to come). Additionally, the city provides seamless relocation support, with local partners offering guidance to startups.
With its flourishing startup ecosystem, thriving fintech sector, and unwavering support from the Berlin government, it is no wonder Berlin has emerged as the fintech powerhouse to reckon with! At our FIBE debut in June, we had the privilege of interviewing Berlin's Mayor and Senator for Economic Affairs, Energy, and Public Enterprises, Franziska Giffey, on her thoughts about fintech and our fintech festival FIBE. Here is what she had to say: