European Wealthtech Investment Hits Five-Quarter Low as Investor Caution Drives Q2 Funding Down 46%
European Wealthtech Investment Hits Five-Quarter Low as Investor Caution Drives Q2 Funding Down 46% #
European wealthtech funding fell 46% quarter-on-quarter in Q2 2026, dropping to $185.5 million across 24 deals, according to FinTech Global Research.
That compares with $343.2 million raised across 34 transactions in Q1 2026. Year-on-year the decline is steeper: Q2 2025 saw $698 million invested across 32 deals, meaning funding contracted 73% over twelve months. The Q2 2026 total is the lowest in at least five quarters.
Average deal size fell alongside total volume. At $7.7 million per transaction, the Q2 2026 figure is 24% below the $10.1 million average in Q1 2026 and 65% below the $21.8 million average in Q2 2025. FinTech Global’s analysis describes investors as “committing smaller amounts per transaction as confidence in the European WealthTech market has waned.”
The quarter’s largest deal was a €30.1 million ($35 million) Series B round closed by Berlin-based Bunch, a provider of private markets infrastructure. Portage led the round, with Illuminate Financial, Motive Partners and Cherry Ventures also participating.
European wealthtech raised $826.9 million in Q4 2025, meaning the sector lost more than three-quarters of its funding volume in the following six months.
The same pattern appears in global figures. FinTech Global reports that global wealthtech investment fell 62% quarter-on-quarter to $932.2 million in Q2 2026, with deals above $100 million down 87% from Q1 levels. Average transaction values fell sharply across geographies.
The data points to continued tight fundraising conditions for European wealthtech companies through the rest of 2026, with investors committing smaller amounts rather than the larger growth-stage rounds that defined the sector’s recent peak.
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