European Fintech Investment Grows 10% Last Year, Shows Confidence In Sector
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Fintech investment in Europe rose by 10% last year, reaching $8.7 billion, according to data from Dealroom.co. The rise in funding came after $7.9 billion was raised two years ago. Investments from companies such as Monzo, WorldRemit, Sequra, and Alan was part of this success. This shows that people trust fintech, one of Europe’s most important tech sectors.
A significant part of the increase came from early-stage companies. Last year, 90% of the almost 1,000 funding rounds were for new startups. This is a good sign for the future, as new fintech companies keep growing across Europe.
European Venture Capital Sees Strong Growth
Overall, European venture capital (VC) funding reached $31 billion early this year. This is the second-best year for VC funding in Europe, just after 2022. With this amount of funding available, experts are optimistic about the future of European startups. It also follows a larger trend in which Europe has raised $100 billion in the last three years.
According to reports, there was less investment in UK fintech companies last year, compared to earlier years. This caused funding in the region to drop by 11%, with only $16.2 billion raised. The less funding in the UK enabled other countries to grow in fintech investments. Germany, for example, saw a 4% increase in fintech funding. The nation successfully reached $8.2 billion in funding.
Although Italy saw a small drop of 4% in funding compared to two years ago, the country had more funding rounds. Last year, there were 345 rounds, up from 324 from the previous year. This shows that more companies in Italy are raising funds, especially in fintech, cybersecurity, and healthtech.
Other European Countries See Funding Growth
Belgium, the Netherlands, and Switzerland saw strong funding growth last year. Belgium’s funding went up by 25%, the Netherlands saw a 12% rise, and Switzerland’s funding grew by 10%. This shows that innovation is growing across Europe. These countries are home to some of the largest funding rounds of the year, such as Wayve in the UK, Poolside AI in Paris, and Helsing in Germany.
Last year, the healthtech sector saw $10.8 billion in investment, surpassing the energy sector. This growth highlights the progress in health tech, with companies like EraCal Therapeutics and Flo Health leading the way. At the same time, enterprise tech grew by 27% to $9.3 billion. AI-powered companies are part of this success.
Many experts said they feel positive about Europe’s tech future. Catherine Lenson, the Chief Operating Officer at Phoenix Court, said Europe has what it takes to establish companies that can succeed globally.
