Key European FinTech investment stats in Q1 2025:
- European FinTech funding increased by 85% QoQ in Q1
- Deals over $100m increased by 2.6x QoQ as investors preferred larger deals
- Quantexa, a global AI, data and analytics software company pioneering Decision Intelligence solutions, secured one of the biggest European FinTech deals of the quarter with a $175m Series F funding round
European FinTech funding increased by 85% QoQ in Q1
In the first quarter of 2025, the European FinTech market recorded 185 deals, reflecting a sharp 59% drop from the 456 deals seen in Q1 2024 and a marginal 5% decline from the 194 deals registered in Q4 2024.
Total funding reached $5.4bn, down 26% from the $7.3bn raised in Q1 2024 but up 85% from the $2.9bn secured in Q4 2024.
The average deal size in Q1 2025 was $29m, nearly double the $15m average in Q4 2024 and significantly higher than the $16m average in Q1 2024, indicating that while deal volume has contracted, capital continues to flow toward larger, more mature players.
Deals over $100m increased by 2.6x QoQ as investors preferred larger deals
Funding from deals under $100m amounted to $1.7bn in Q1 2025, down 52% from the $3.6bn recorded in Q1 2024 and 11% below the $1.9bn seen in Q4 2024.
In contrast, high-value deals worth $100m or more surged to $3.7bn, nearly matching the $3.7bn figure from Q1 2024 and up 2.6x from the $1bn secured in Q4 2024.
This rebound in big-ticket deals suggests growing investor confidence in select European FinTech firms, even as broader economic uncertainty continues to put pressure on early-stage investment activity across the region.
Quantexa, a global AI, data and analytics software company pioneering Decision Intelligence solutions, secured one of the biggest European FinTech deals of the quarter with a $175m Series F funding round
The round was led by Teachers’ Venture Growth, part of the Ontario Teachers’ Pension Plan.
The investment valued the UK-based company at $2.6bn and will support its ongoing platform innovation, strategic expansion into North America, and pursuit of targeted acquisitions.
With a Decision Intelligence platform designed to unify siloed data and enhance operational decision-making across sectors such as financial crime, risk, fraud, and KYC, Quantexa has seen rapid growth, adding 23 new customers in 2024 and achieving nearly 40% licence revenue growth.
The funding will also accelerate partnerships, including its AI-powered offerings through Microsoft Fabric and Azure Marketplace, while enabling deeper public sector engagement as the company expands its footprint of 16 offices and more than 800 employees globally.
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