Top investors important for Luxembourg FinTech ecosystem with the biggest sum of funding rounds in industry over the recent years

Intro

With over 150 banks, more than 2,000 ICT firms, 332 insurance and reinsurance companies, financial infrastructure companies, such as the stock exchange and central securities depositories, and Europe’s largest hub for investment funds, the Luxembourg financial center represents a significant market for innovative FinTech companies.
Association of the Luxembourg fund industry (ALFI) and The Luxembourg Bankers’ Association (ABBL) are committed to engage with the FinTech community while Luxembourg CSSF (Commission de Surveillance du Secteur Financier), which built a reputation on its rigour and reactivity as well as on the support it offers to the sector, regulates all financial activities.
Charged with building and fostering Luxembourg’s burgeoning FinTech ecosystem, the Luxembourg House of Financial Technology (The LHoFT), a dedicated national FinTech platform, brings together financial institutions, FinTech innovators, research, academia and public authorities, to help drive forward the development of products.
In addition to LHoFT, several initiatives support innovative companies in FinTech and other tech-related sectors: Technoport, an internationally highly-ranked incubator, Luxembourg House of Start-ups (HoST), a new start-up hub located at the heart of the capital city, and others.

The top 50 investors according to the total money raised in the funding rounds. These are VC funds and corporate investors in Western Europe that have invested over the last 3 years. They are actively investing in FinTech industry.

Amount of money raised in FinTech funding rounds is $8.1B, which is 4.1% of the total amount of money raised in rounds in Western Europe over the last 3 years.

Top investors important for Luxembourg FinTech ecosystem with the biggest sum of funding rounds in industry over the recent years
data provided by Unicorn Nest

Key takeaways

• Funds Geography – The most common countries among top VCs are Germany and France. They host 14 VCs each. There are also funds from Switzerland and Spain. The most common city is Paris which is home to 13 funds. There are also funds from Berlin, Luxembourg and Madrid. VCs in the sample usually invest in France and Germany. They also invest in The United States and The United Kingdom. For the majority of the funds, the country of the funds’ establishment and the country of their most frequent investments coincide.
• Industry Focus – The funds’ most common field for investments is Finance. They also invest in Banking, Insurance and Autonomous Vehicles.
• Important Years – The oldest fund in the sample was founded in 1854 and the newest one in 2018. In 2015 the most amount of funds were founded. VCs in the sample made the most deals in the period from 2000 to 2020. For some funds, 2017 was the year with the most amount of deals.
• Investments – Usually VCs take part in 2 – 6 funding rounds per year, sometimes in 2, 7 – 12 or in 13 – 24. The minimum number of funding rounds for VCs in the sample is 8, the maximum is 482. Average number of funding rounds is 97.4 while median is 51.0. The most common amount of funding rounds for VCs in the sample is 8. Minimum amount of lead investments for funds is 0 and maximum is 166. Average amount of lead investments is 24.1 while median is 10.0. The most common amount of lead investments is 1. Index of difference in percentage points of lead investments from the average is between -44.33 and 29.0 for funds in the sample. The average value for this difference is -1.98 and the median is 0.1. It means that these funds act as lead investors less often than other funds. The most common value is -21.0.
• Typical Rounds – The most common investment stage for funds in the sample is Early stage. Seed, Late and Private Equity stages are less common. VCs usually participate in rounds with 3 – 4 investors. Less often in rounds with 2 – 3, 4 – 5 or 3 – 3 investors. The most common round size for VCs in the sample is less than 100 thousands. Less common ranges are 10 – 50 million, 100 thousands – 1 million and 1 – 5 million. A Funds’ average multiplicator for portfolio companies at the last known valuation is 0.0 at minimum and 2.13 at maximum. Average value for this multiplicator is 0.18 and median is 0.11. The most common multiplicator value is 0.0.