EMEA Daily: France Will be Top Startup Destination in Europe in Two Years; Square Launches in Spain

In today’s top Europe, Middle East and Africa (EMEA) news, FinTech Lydia said it will take two years for France to be a top startup destination in Europe, and Spanish entrepreneurs now have access to Square. Plus, the European Union’s finance watchdog said conflicting rules over 5G pose a security risk, and small- to medium-sized business (SMB) lender 365 Business Finance has raised 55 million pounds (about $74 million) to fund its goal of quadrupling lending.

Why Doesn’t Europe Have a Financial Super App?

Cyril Chiche, co-founder and CEO of French FinTech unicorn Lydia, said it will take France two years to stand shoulder to shoulder with the United Kingdom or Ireland, currently the top destinations for startup funding in Europe. Venture capital (VC) investment in French startups doubled in the past year, growing from 5.1 billion euros (about $5.8 billion) to over 11 billion euros (over $12 billion) in 2021.

Square Launches in Spain

Spanish entrepreneurs now have access to Square, which provides payment solutions for consumers and businesses. Alyssa Henry, head of Square, said Spanish businesses can use its integrated ecosystem of products and services including software, hardware and payment solutions to help them launch, operate or grow their businesses.

EU Court of Auditors Concerned Over Security, Delays on 5G

The guardian of the EU’s finances said conflicting rules over vetting 5G technology suppliers pose a security risk to the bloc. In a 69-page report, “5G roll-out in the EU: Delays in deployment of networks with security issues remaining unresolved,” the European Court of Auditors (ECA) called for renewed energy to advance the rollout of 5G but expressed concern over potential security problems.

London’s 365 Business Finance Raises $74M

SMB lender 365 Business Finance has raised 55 million pounds (about $74 million) in debt and equity financing to fund its goal of quadrupling lending by 2023. The equity round was led by Kendal Capital, a global specialty finance investment firm, while the debt facility was concluded with Pollen Street Capital, a London-based alternative investment management company.

Finance Minister: Russia Should Regulate, Not Ban Crypto

Russia must create regulations governing cryptocurrencies instead of abolishing them, the head of the policy department at the country’s Ministry of Finance said. Ivan Chebeskov made these comments during a conference call organized by the Russian publication RBK, held less than a week after Russia’s central bank issued a report proposing a full ban on the mining and trading of cryptocurrency.

B2B Platform Fashion Cloud Launches Model for eCommerce Product Data

B2B platform Fashion Cloud has created a new model for eCommerce product data aligned with industry standards and aimed at helping merchants integrate information from brands into their digital stores. Fashion Cloud partnered with Bte and Euretco to develop the guide, which will assist over 17,000 merchants that use the platform to tap the product data that brands provide.

UK Challenger Banks Facilitate Loan Access With Credit Builder Tools

Credit invisible customers and businesses often face an uphill battle when accessing credit in the U.K. because they have little or no credit history with U.K. credit agencies. In 2021, Experian estimated that nearly 5.2 million people in the country were excluded from financial services because they were credit invisible.

Italian Bank UniCredit Seeks to Sell Leasing Business

Milan-based investment banker UniCredit is weighing offers from a series of suitors who want to take over its leasing operations. The bidders include private equity firms Bain and Christofferson Robb and Co, along with Italy’s Alba Leasing.

Researcher Highlights Potential Security Vulnerabilities of Connected Cars

Imagine getting an email telling you that someone had hacked into your connected car and not only found your email address, but also gained control of the car’s door locks and horn. That happened to two dozen owners of Tesla vehicles after a hacker first got control of those vehicle functions through a piece of third-party software they were using, and then found their email addresses through the software for Tesla’s digital key.

EU Report on Internet of Things Highlights Potential Competition Concerns

The European Commission published a sector inquiry into consumer Internet of Things (IoT), analyzing the competitive landscape, emerging trends and potential competition issues. The report summarizes the responses from more than 200 companies active in the manufacturing of smart devices, the provision of voice assistants and/or the provision of consumer IoT services, as well as from 14 standard-setting and industry organizations.

Turkish Startups Snag Record $1.55B Funding in 2021, a 948% YoY Increase

In 2021, several countries set new annual records in terms of deal count and investment value, and Turkey was no different. Last year turned out to be the biggest year for startups in the country, after raising a record $1.55 billion-plus in angel and venture capital funds, representing a staggering 948% year-over-year increase in total investments.