Key European WealthTech investment stats in H1 2024:
- European WealthTech investments halved in H1 YoY
- UK companies continued to dominate the European WealthTech space completing 27% of all deals in the region during the first half of the year
- Abound, a leading credit technology company, secured the largest European WealthTech deal for the first half of the year with a funding round of $1bn
In H1 2024, the European WealthTech industry experienced a sharp decline in both deal activity and funding. The region recorded 293 funding rounds, representing a 63% drop from the 788 deals completed in H1 2023. Similarly, European WealthTech companies raised $4.8bn during the same period, a significant 51% decrease from the $9.8bn raised in H1 2023. This substantial reduction in both deal volume and funding highlights a broader slowdown in the sector, with investor activity contracting considerably compared to the previous year.
The United Kingdom remained the most active WealthTech market in Europe, with companies in the country completing 80 deals (27% share) in H1 2024. However, this marked a dramatic 64% decrease from the 220 deals recorded in H1 2023. Despite the fall in deal numbers, the UK’s percentage share of activity remained stable, underscoring its continued leadership in the region. Germany followed with 40 deals (14% share), down from 98 deals in H1 2023, while France completed 31 deals (11% share), compared to 103 deals in the same period last year. Despite these steep declines, the UK, Germany, and France retained their positions as the top three most active countries, reflecting their ongoing influence in the European WealthTech landscape despite the broader slowdown.
Abound, a leading London-based credit technology company using Open Banking and artificial intelligence to offer more affordable loans, has secured the biggest WealthTech deal in the UK for H1 2024 with a new financing round of $1bn. This significant funding follows Abound’s rapid growth and achievement of profitability just three years after its launch. The new capital includes a multi-year asset-backed debt financing arrangement from Citi, based on loan originations, and a Series B equity round led by Silicon Valley’s GSR Ventures. Abound has issued over $400m in loans to date and plans to double its workforce to 130 employees this year. The company’s AI-powered technology, Render, analyses customers’ bank transaction data to tailor loan repayment plans based on individual financial situations, contrasting with traditional credit checks that rely on broad statistical averages. With over 15m people in the UK struggling to borrow for unexpected costs, Abound aims to revolutionize credit decision-making, promoting financial inclusion by making loans accessible at more affordable rates. As a pioneer in leveraging Open Banking and AI in consumer credit decisioning, Abound is already partnering with banks and lenders across Europe to support the AI transition in the lending industry.
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