According to a new report, the Swedish capital is the second most attractive city in terms of fintech investment, attracting just under 20 per cent of all investment in the past five years.
The report from Stockholm School of Economics places Stockholm just behind London in terms of investments received with 18.3 per cent of all investments made in the last half decade.
Stockholm has managed to achieve year on year impressive results, with 2014 seeing a record $266m worth of investments being secured.
Last year’s total made up nearly one-fifth (18 per cent) of the total $1.48 billion fintech investments made across Europe.
The city’s three biggest deals made up nearly $200m alone, with Klarna, the e-commerce solutions company, receiving $125m. IZettle, the payments startup, secured $55.5m, whilst Trustly, the payments provider, raised $28.8m.
The fintech investments are having a very significant effect on the whole country’s economy. The city’s 2014 fintech investments accounted for a third(32 per cent) of the whole of Sweden’s investments in private companies ($826m).
The country’s fintech sector is said to have generated an estimated $1.3 billion in 2013, marking an astounding 25 per cent increase from 2010 figures.
Trading & Banking technology segment makes up 38.8 per cent of Stockholm’s total revenue, whilst payments make up exactly a third.
As of 2014, the sector employs roughly 4,600 full-time employees, with fintech roles increasing by 44 per cent between 2010 and 2013.
This growth will likely continue and even intensify in the years to come, enabling Stockholm to retain its position as one of the major fintech hubs globally,” said Torbjörn Bengtsson, of the Stockholm Business Region Development.
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