European FinTech Funding Expected to Grow 19% in 2025 as Investors Shift to Larger Deals #
European FinTech investment fell sharply in Q1 2025, with funding down 25% year-on-year to $5.4bn and deal volume dropping 59% to 180 transactions. The average deal size rose to $30.2m from $16.4m a year earlier, reflecting a market shift toward fewer but larger deals as investors back mature firms with proven scalability.
If current trends persist, 2025 is forecast to close with $21.7bn in funding—19% higher than last year—despite a 30% decline in deal numbers. One of the largest Q1 deals was Fundment’s $55.5m Series C, led by Highland Europe and ETFS Capital, supporting its platform to modernise wealth management through integrated services, automation, and institutional partnerships.