Key European FinTech investment stats in Q1 2026:
- European FinTech funding dropped by 31% YoY in Q1
- Trend analysis showed a projected hit in funding for 2026 driven by a 55% drop in large deals (over $100m)
- 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 top European FinTech deals of the quarter
European FinTech funding dropped by 31% YoY in Q1
European FinTech recorded $3.8bn in funding across 192 deals in Q1 2026, a 31% decline in capital raised compared to the $5.4bn secured in Q1 2025.
Deal count, however, increased by 4% from 184 transactions over the same period.
The divergence between those two measures is striking.
More deals were completed in Q1 2026 than a year earlier, yet significantly less money changed hands.
That pushed the average deal size down 34% to $19.6m from $29.6m in Q1 2025, and well below the $21m average recorded across 2025.
Set against 2025’s total of $15.6bn across 742 deals, Q1 2026 accounts for 24% of last year’s funding and 26% of 2025’s deal volume.
While deal-making activity is holding up, the scale of individual transactions has moderated considerably.
Trend analysis showed a projected hit in funding for 2026 driven by a 55% drop in large deals (over $100m)
Should Q1 2026’s pace continue for the remainder of the year, 2026 would close with 768 deals and $15.1bn in total funding, representing a 3% increase in deal volume but a 3% decline in capital raised compared to 2025.
The shift in funding composition between Q1 2025 and Q1 2026 is perhaps the most telling feature of the quarter’s data.
Deals of $100m or more contributed $1.7bn in Q1 2026, a steep 55% fall from the $3.7bn that larger transactions generated in Q1 2025.
Their share of total quarterly funding dropped from 68% to 44% over the same period.
In contrast, deals under $100m raised $2.1bn in Q1 2026, a 22% increase on the $1.7bn recorded in Q1 2025, with their share of total funding rising from 32% to 56%.
Across 2025, larger deals accounted for 58% of annual funding at $9.1bn, underlining how significant the retreat of big-ticket transactions has been in Q1 2026 relative to recent norms.
That rebalancing may reflect a degree of caution among the largest investors in the current environment.
Capital is continuing to flow, but it is gravitating towards a wider spread of mid-sized opportunities rather than concentrating in a handful of landmark rounds.
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 top 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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