The main drivers of venture capital investment in the European Fintech ecosystem

• Autor(a) principal: Coutinho, Tiago Pejapes
• Data de Publicação: 2023
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10071/30625
• topic: Fintech; Venture capital; Europe; Investment; Startup; Europa; Investimento

The Fintech industry has been attracting massive attention from private investors, mainly Venture Capital, over the last years, due to the great financial returns that previous investments in the sector have generated and, more importantly, how the technology created by this ecosystem can innovate the daily life of society, both socially and professionally. In this thesis, I analyze what are the main drivers of the Venture Capital industry's investment in the European Fintech sector. My objective with the research is to determine how this new market is being developed by Venture Capitalists and what are the main drivers of the demand for this new technology. Upon that, I aggregated and examined the investments that were made by VCs in European Fintech start-ups during the period 2018 – 2021, using the Crunchbase database. I initially performed descriptive statistics to achieve an overview of the market. I used econometric models to conclude what were the possible main variables that influence the relationship between the two sectors. I’ll use as explanatory variables the amount and stage of the investment, the start-up’s location, age, composition of the team, and industry, and the VC’s age, location, and investment fund focus.