Author
AVOLTA
Date
Mar. 17th, 2025
After the funding boom of 2021–2022 and the market slowdown of 2023, the European Fintech ecosystem in 2024 is showing signs of a modest recovery. While total investment levels stand at €6.3bn (+15% YoY), the total number of fundraising transactions declined by 29% YoY, reflecting a shift towards larger and more selective funding rounds.
In 2024, the UK remained the leading Fintech hub, while France and Germany reinforced their positions as key challengers. North American investors continued to dominate cross-border investments in European Fintech, as 7 of the 10 largest investors by deal value over the past five years were US-based.
CFO software solutions led funding activity, securing €1.5bn, followed by Insurance and Banking solutions. The commission-based model remains dominant, accounting for 60% of all deals, in line with historical trends.
Exits remain at a similar level to 2023, totaling €5.3bn (thanks to a €3bn acquisition(1)). M&A remained the primary exit route (90% of transactions), while buyout activity appears to have stalled.
North American acquirers accounted for more than 55% of total exit value, despite representing a minority of transactions.
VC-backed companies exited at a median EV/Revenue multiple of 5.8x, compared to 4.4x for bootstrapped companies. Over the past five years, 44% of exits were below €50m, while only 28% exceeded €150m.
Arthur Porré, Managing Partner, 18th of March 2025