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European fintech investment climbed by 10% in 2024, reflecting growing confidence in one of the continent’s most vibrant tech sectors. Total funding surged from $7.9 billion in 2023 to $8.7 billion, driven by major funding rounds for companies such as Monzo ($605 million), WorldRemit ($267 million), Sequra ($211 million), and Alan ($178 million), according to data from Dealroom.
Promising Trends in Early-Stage Funding
The report highlights an encouraging trend: 90% of nearly 1,000 funding rounds occurred at the early stage, suggesting a new wave of fintech startups is emerging across Europe.
This growth in fintech investment comes as Europe’s overall venture capital (VC) funding continues to expand. The $8.7 billion raised in fintech contributes to a broader trend where VC funding across all tech sectors is now 4.2 times the $12.6 billion raised in 2014. Additionally, the number of unicorns has skyrocketed from 59 in 2014 to 579 in 2024, marking a 10x increase.
Strong Start for 2025
Optimism for 2025 is high, as the continent begins the year with $31 billion in “dry powder” — capital available for startup investments and scale-up initiatives. This is the second-highest level of dry powder recorded, surpassed only by 2022.
Country-Level Insights
Despite the growth in fintech funding, regional disparities remain. The UK, traditionally the strongest hub for VC investment in Europe, saw its overall tech sector funding decline by 11% to $16.2 billion in 2024. However, the country retains its position as Europe’s leading destination for VC investment.
Germany, meanwhile, bucked the downward trend with a 4% increase in tech sector funding, reaching $8.2 billion. While this growth is notable, Germany still has significant ground to cover to challenge the UK’s dominance.
Conclusion
The 10% rise in fintech investment underscores the resilience of Europe’s fintech sector, even amid broader economic challenges. With strong early-stage activity and significant capital reserves to fuel innovation in 2025, the sector is well-positioned for sustained growth and global competitiveness.
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