Fintech Financing Opposes The Negative Trend In Europe
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Fintech funding in Europe is rising, despite the overall decline in startup investments during the third quarter of this year. At this time, European startups had trouble raising money, totaling only $11.3 billion.
This figure is down 35% from last year, according to a new report from Dealroom. However, total tech funding in Europe has reached $40.9 billion this year, and experts think it might match last year’s total of $58.2 billion.
Dealroom’s report shows that a big reason for this growth is the rise of AI health tech and the popularity of Generative AI. These trends show that the European startup scene is still strong. The report revealed the health tech sector had a surprising comeback, getting more venture capital than any other area. In the third quarter alone, health tech companies raised $2 billion.
Generative AI Helps European Startup Gain $165 Million In Q3 2024
AI technology is also very important in the European startup world. Dealroom noted in his report that generative AI attracted a lot of interest, bringing in $165 million in the third quarter. So far this year, the report shows that Generative AI companies have raised $3.3 billion, accounting for 8% of all venture capital funding in Europe. Other popular areas for investment include industrial tech and hydrogen tech.
The fintech field is improving after a tough 2023. In the third quarter of 2024, funding for fintech startups rose by 45% to reach $1.6 billion, driven by new AI and finance solutions. This growth shows that fintech is gaining importance.
While late-stage investments fell, early-stage and breakout-stage deals have stayed strong this year. Dealroom’s report shows that more than 2,000 rounds of funding worth $2 million or more have been secured by startups in Europe. This means there are many new and innovative companies, and their future is promising.
European Startups Aim To Provide $33 Billion For Investment By The End Of 2024
The European startup scene is ready for more growth driven by AI health tech and Generative AI. Many new companies are joining the ecosystem, according to the update. With $33 billion expected to be available for investment by the end of the year, the startup community is prepared for more excitement next year. Investors are eager to back these new ideas.
Remus Brett, a leader at LocalGlobe and Latitude, said that Europe’s fintech industry is strong again, as shown by recent funding numbers. Many fintech startups are now using AI to help create new ideas for businesses and customers. The rise of top fintech companies earning over $100 million a year is boosting growth and jobs.
