"European fintechs raised €3.6 billion in the first half of 2025, 23% higher than in the same period in 2024, with funding on track to reach €7.6 billion for the year. In 2021, this total reached almost €16 billion. But 2021 was an anomaly, a sugar-high: a liquidity-driven bubble when venture investment hit record highs. We don't expect to see those levels for another five to seven years, nor should we seek to recreate that. What matters now is building stamina, not chasing another rush."
"The challenge for European markets isn't chasing bubbles but building durable ecosystems where capital formation is balanced and sustainable. European scale-ups have long scaled under tighter capital constraints than their American counterparts. The result is companies built on sturdier foundations, less vulnerable to the ups and downs of funding markets. But also, a persistent excess demand for capital and, in turn, more reasonably priced assets in the small-to-mid-market."
Europe hosts over 9,000 fintechs and the United States over 13,000, with leading companies in payments, banking, and B2B software. European fintechs raised €3.6 billion in H1 2025, a 23% increase year-on-year and on track for about €7.6 billion in 2025, far below the nearly €16 billion peak in 2021. The 2021 peak reflected a liquidity-driven bubble and is unlikely to recur for five to seven years. European firms have scaled under tighter capital constraints, producing sturdier businesses but leaving persistent excess demand for mid-market capital. In 2025 two deals—Rapyd and FNZ—accounted for nearly half of European fintech funding, underscoring concentration and the need for a broader funding base.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]