German startups who want to make investments or insurance easier and more convenient for consumers have received record amounts from investors. In 2019, the young financial firms raised 1.7 billion euros, according to figures from the analysis company Barkow Consulting. That is an increase of 44 percent compared to the previous year. Insurance startups alone accounted for around 442 million euros, three times as much as in the previous year. “The digital range of insurance solutions is growing,” said founder Peter Barkow. Insurance startups were booming.
In 2019, triple-digit millions flowed into the digital car insurer Friday, which prices policies depending on the kilometers traveled, and the insurance startup Wefox, which offers household and liability insurance via app in a matter of minutes.
PwC also sees a lot of impetus for financial startups. Germany’s banks have invested more aggressively than ever in such “fintechs”, according to a new study by the consulting company. From January to July 2019, she observed 36 direct bank holdings in young financial firms – almost as many as in the entire previous year.