European fintech investment saw a significant increase of 10% in 2024, reflecting growing confidence in one of the continent’s leading tech sectors. Funding rose from $7.9 billion in 2023 to $8.7 billion, driven by several substantial rounds including Monzo ($605 million), WorldRemit ($267 million), Sequra ($211 million), and Alan ($178 million), according to Dealroom data.
Notably, a new generation of startups is emerging, with 90% of nearly 1,000 funding rounds occurring at the early stage. This uptick in fintech funding coincides with overall venture capital investment in Europe reaching 4.2 times the $12.6 billion raised across the region in 2014, with unicorn creation increasing tenfold (from 59 to 579).
Looking ahead to 2025, expectations are optimistic as Europe starts the year with $31 billion in “dry powder”—capital available for investment in startups and scaling companies—marking the second strongest year on record after 2022.
However, a closer examination reveals that the UK, previously the leading hub for tech investment, experienced an 11% decline in funding across all tech sectors, totaling $16.2 billion. Despite this, it remains the dominant player in venture capital investment. Meanwhile, Germany appears to be gaining momentum, recording a 4% increase to $8.2 billion, although it still has a considerable distance to go to challenge the UK’s preeminent position.