Key European WealthTech investment stats in Q1 2025:
- European WealthTech funding increased by 5% QoQ in Q1
- Deals over $100m returned in the quarter as investors’ interest recovered
- Fundment, a UK-based tech platform transforming the wealth management space by streamlining administrative processes for financial advisers, secured one of the biggest European WealthTech deals of the quarter with a $55.5m Series C funding round
European WealthTech funding increased by 5% QoQ in Q1
The European WealthTech market witnessed a sharp contraction in Q1 2025, both in deal volume and overall funding, compared to the same period in the previous year.
Q1 2025 closed with just 24 deals, marking a significant 85% drop from the 163 deals seen in Q1 2024, and a 14% decline from the 28 deals recorded in Q4 2024.
Total funding in Q1 2025 stood at $418m, representing an 82% YoY drop from the $2.3bn raised in Q1 2024, and a modest 5% increase over the $400m raised in Q4 2024.
However, it’s important to note that funding in early 2024 was heavily skewed by the presence of the year’s five largest deals totalling $1.17bn in Q1 and a single $1bn deal in Q2, inflating baseline comparisons.
Deals over $100m returned in the quarter as investors reset after early 2024 elevated peaks
Funding from deals under $100m reached $282m in Q1 2025 — down 76% from the $1.2bn recorded in Q1 2024 and a 30% decline from the $400m seen in Q4 2024.
Larger deals valued at $100m or more totalled $135m in Q1 2025, reflecting an 88% drop from the $1.2bn raised by such deals a year earlier.
Notably, Q4 2024 saw no deals above the $100m mark, making Q1 2025 a return of sorts for high-value transactions, albeit at much lower volumes.
These figures underline the ongoing caution among European WealthTech investors, who remain selective amid market headwinds and a reset in deal valuations after the elevated peaks seen in early 2024.
Fundment, a UK-based tech platform transforming the wealth management space by streamlining administrative processes for financial advisers, secured one of the biggest European WealthTech deals of the quarter with a $55.5m Series C funding round
The round was led by Highland Europe and ETFS Capital.
Designed to replace fragmented and legacy infrastructure, Fundment’s platform delivers integrated core services, back-office tools, and discretionary investment management capabilities, enabling advisers to offer more personalised and efficient financial services.
Its technology supports tax wrappers, custom API integrations, and automation of complex regulatory tasks, addressing increasing demands for timely, data-driven client interactions.
With $68tn of assets expected to be transferred globally over the next 30 years, Fundment is well positioned to capitalise on intergenerational wealth shifts.
The platform is already integrated with major financial institutions including Legal & General, BlackRock, and HSBC, and supports a wide array.
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