VC interest in European FinTechs remains strong with over 500 individual investors seeing opportunities in Q3 2023 although key players remain absent. Of the top 10 list above only BPI France and Techstars rejoin the list from H1 2023 indicating an absence of activity among the usual most active investors in European FinTech such as Antler and Seedcamp. European VC funding is considerably down in Q3 2023, with deal activity dropping 50% YoY. A report from EY, which FinTech Global highlighted in May 2023, suggested that for the immediate future, VCs likely will become even more selective about how they deploy capital and that Seed and Series A rounds may become more challenging as VCs will likely prioritize existing portfolio companies, however this effect is still not apparent. European FinTech seed activity totalled at 147 deals in Q3 2023 and is on track to reach 672 deals in 2023, a 1.1% drop from 2022 although Q3 saw a 25% drop from Q2 2023.
Tenity (formerly F10), an early-stage investor, was the most active VC in European Fintech companies with six deals in Q3 2023. Companies Tenity have invested in include Magic Square, a discovery and engagement platform for the Web3 digital assets and blockchain ecosystem, and Defiria, which offers quantitative risk management services to DeFi and cryptocurrency investors. The latest update from Tenity on September 5th 2023 announced the second edition of the Tenity Incubation Program. Our Nordics hub kicked off this week in Tallinn, with a cohort of 7 exciting startups selected from more than 130 applications. During the 4-month rigorous program, the startups will receive training, coaching, and mentoring from Tenity’s experienced team of experts. Furthermore, the startups with a focus on impact, sustainability, and climate fintech solutions, will have custom breakout sessions to address specific challenges and opportunities in the Nordics & Baltics region.