European FinTech investment stats in Q2 2024:
- FinTech deal activity in UK dropped by 68% YoY
- Average deal value increased by 87% as investors focused on larger transactions
- UK continued its domination of the European FinTech market with over a third of all deals in the region completed in Q2 2024
In Q2 2024, the UK FinTech sector experienced a sharp decline in both deal activity and funding. Only 71 deals were recorded in Q2 2024, marking a 68% decrease compared to the 224 deals completed during the same period last year. Funding also saw a significant drop, with FinTech companies raising just $1.9bn in Q2 2024, a 41% decrease from the $3.2bn raised in Q2 2023. Compared to Q1 2024, which saw 117 deals and $2bn in funding, Q2 2024 represents a 39% drop-in deal activity and a 5% decrease in funding.
The average deal value in Q2 2024 was approximately $26.8m, a notable increase from the $17.1m average in Q1 2024, but slightly higher than the $14.3m average in Q2 2023, representing an 87% rise. This increase in average deal value suggests that while fewer deals are being closed, investors are focusing on larger transactions, possibly due to a strategy of backing more mature or promising FinTech businesses amid the challenging economic environment.
Despite a sharp decline in the number of deals, the United Kingdom continues to dominate the European FinTech sector. In Q2 2023, the 224 deals that UK secured accounted for 28% of the total FinTech deals across Europe. For the past quarter even though the number of deals dramatically dropped to just 71, the UK’s share of European FinTech deals rose to 35%. This shift indicates that, while there is a notable decrease in overall deal activity, the UK remains the undisputed leader in Europe’s FinTech landscape. The increase in percentage share, despite fewer deals, suggests a potential consolidation in the market or an increasing focus on higher-value deals.
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