European fintech investment increased 10% in 2024

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Funding rose from $7.9 billion in 2023 to $8.7 billion thanks to a number of mega-rounds including Monzo ($605m), WorldRemit ($267m), Sequra ($211m) and Alan ($178), according to figures from Dealroom.

There are also promising signs of a new generation of startups emerging, with 90% of just under 1,000 funding rounds taking place at early stage.

The increase in fintech funding comes as overall VC funding in Europe is now 4.2x the $12.6bn raised across the entire region in 2014, and unicorn creation has climbed 10x (from 59 to 579).

Hopes for 2025 are high as the continent starts the year with $31bn of dry powder – capital to invest in startups and scaling companies – the second strongest year on record after 2022.

Digging deeper, previously dominant UK funding across all tech sectors saw a notable 11% drop to $16.2 billion, although it remains far and away the most outstanding hub for VC investment.

Germany may be coming up on the rails, bucking the downward trend with a four perent increase to $8.2 billion, but it has a lot of ground to cover before it can be proclaimed as a serious threat to the UK’s dominant position.