Key European FinTech investment stats in Q1 2026:
- European FinTech deal activity fell by 47% YoY in 2025
- UK retained its position as the main European FinTech hub as companies based in the country secured over a third of all deals
- Alan, a digital health insurance platform serving employees, freelancers, and retirees, has raised $116m in a funding round that values the company at $5.8bn, making it one of the biggest European FinTech deals of the quarter
European FinTech deal activity fell by 47% YoY in 2025
European FinTech deal activity reached 273 transactions in Q1 2026, its highest level since Q1 2025, up 5% from 260 deals during the same period last year and 13% from 241 deals in Q4 2025
Funding, however, told a more cautious story.
Capital raised totalled $3.7bn during the quarter, down 31% from $5.4bn in Q1 2025 and a further 22% below the $4.8bn recorded in Q4 2025.
The divergence between rising deal volumes and falling funding levels points to a shift in the composition of investment activity, with a greater number of smaller transactions completing even as the larger, higher-value deals that drove funding in earlier periods became less prevalent.
UK retained its position as the main European FinTech hub as companies based in the country secured over a third of all deals
The UK retained its position as the most active European FinTech market in Q1 2026, recording 103 deals and a 38% share of total activity, up from 88 deals and a 34% share in Q1 2025.
France climbed into second place with 30 deals and an 11% share, displacing Germany, which slipped to third with 22 deals and an 8% share.
In Q1 2025, Germany had held second position with 26 deals and a 10% share, while France sat third with 24 deals and a 9% share.
The reordering between France and Germany is relatively modest in volume terms, but the UK’s continued strengthening of its share is the more significant trend, consolidating its standing as the dominant hub for FinTech investment activity across the region.
Alan, a digital health insurance platform serving employees, freelancers, and retirees, has raised $116m in a funding round that values the company at $5.8bn, making it one of the biggest European FinTech deals of the quarter
The round was led by existing investor Index Ventures, with new investors Greenoaks, Kaaf, and SH also participating, alongside business angels including Shopify founder Tobi Lütke and footballer Antoine Griezmann, as well as Belgian bank and insurer Belfius, which had led the previous Series F.
Alan now serves 1 million members across its health insurance and wellness platform, which allows users to manage reimbursements, consult doctors, and monitor health habits through a single app.
The company reported annual recurring revenue of $915m in 2025, up 53% year on year, and has set a target of $1.2bn in ARR for 2026.
Having reached operational profitability in France, its largest and longest-standing market, Alan has since expanded into Belgium, Spain and Canada, where it is now licensed across all provinces and has begun commercial operations.
Net losses narrowed from $61m in 2023 to $56m in 2024, with the company claiming to have halved its losses as a proportion of revenue over the past year.
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