State of European Fintech 2025 (Finch Capital)
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Finch CapitalSummary
- The number of fundraising deals fell to 340, down 32% from 498 in H1 2024.p.6
- 73% of total funding value went to the top 20 FinTech deals, up from 62% in H1 2024.p.6
- FinTech received 23% of total European funding, up from 18% in 2024.p.6
- US investors now represent 28% of all European FinTech transactions.p.4
- 91% of announced M&A deals had a transaction size below EUR 500m.p.6
- 20% of FinTech funding volume went to AI start-ups and scale-ups, up from 16% in 2024.p.6
Key insights
- Funding concentration intensified, with the top 20 deals taking 73% of capital in H1 2025, up from 37% just 18 months prior.p.4
- Around 25% of all VC and growth funding in H1 2025 flowed into FinTech.p.4
- Mid-market M&A transactions of €100-500M are 5x more common than €500M+ exits.p.4
- FinTechs represent nearly 50% of the European IPO backlog.p.4
- Year-on-year growth of R&D teams at top FinTech firms slowed to 2%, down from 9% in 2024.p.6
- The UK accounts for 56% of total European FinTech funding, down from 60% in H1 2024.p.6
Published by Finch Capital (funder profile)
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