State of European FinTech 2026 (Finch Capital)

Summary

• Top European FinTech hubs have grown by 37% since Covid-19, while top US hubs have declined by 13% in total funding value.p.5
• UK-based VC/Growth deals accounted for 70% of total deal value in Europe in 2025.p.7
• Of total funding value, 39% was led by US investors, 28% by European investors and 33% by a mix.p.9
• Revolut and FNZ account for 25% of total European FinTech funding value in 2024-25.p.10
• For selected listed FinTechs, median revenue grew 308% versus headcount 203%.p.13
• 37% of 2025 exit value was concentrated in Klarna's IPO.p.19

Key insights

1. The UK grew deal value by 38% in 2025, whilst Germany and France declined by 42% and 24% respectively.p.7
2. European CFO Office companies convert funding into exit value ~2x more efficiently than US peers.p.8
3. Pension funds' VC allocation is below 0.02% in the EU versus 1.9% in the US.p.9
4. All European EUR 1Bn+ rounds were led by private US investors.p.9
5. US valuations are 2.0x more volatile than Europe, and US funding is 1.3x more volatile.p.11
6. Estimated EU control is 65% in the distribution layer, 42% in enablement, 28% in financial infrastructure and 10% in foundation infrastructure.p.12
7. Regulatory and CFO-driven verticals account for 44% of AI-led company creation in European FinTech.p.15
8. Payments keeps giving as a top sector in Europe both in terms of funding and exits.p.18