Europe's Fintech investment landscape in 2025: A deep dive

Fintech is making a strong comeback in Europe. After years of rapid growth followed by a slowdown, the sector is showing fresh momentum in 2025. Over €6.3B has already been invested this year, signaling that investor confidence is returning. Areas like B2B fintech, embedded finance, AI-driven financial tools, and vertical solutions for industries like logistics and manufacturing are gaining the most traction. Combined with supportive EU-wide policies and a growing number of innovation hubs, the fintech sector is entering a more mature and focused phase of growth.

In this article, you’ll get a snapshot of Europe’s fintech landscape today, the investors driving it forward, and the rising startups reshaping the future of financial services. From VC trends to standout companies on SeedBlink’s radar, here’s what to watch in the next wave of fintech growth.

The State of fintech in Europe

At the European level, the fintech industry in the EU has experienced rapid growth since the mid-2010s, particularly after 2016. More fintech startups have been launched in the last several years than in the entire 15 years before. These companies tend to establish themselves in major financial hubs, such as Berlin, Milan, and Paris. Why? Because those locations offer better access to funding, investors, support programs, and experienced partners. To help sustain this growth, the EU has introduced significant policy initiatives, such as the EU Digital Finance Platform and new regulations to support crowdfunding and open finance. 

Europe’s fintech ecosystem has been shaped heavily by the presence of so-called “founder factories”—cities where fintech unicorns were born and where former employees launch many new startups. In London, 68% of fintech spinouts founded by ex-unicorn employees were also established in the same city. In Paris, the rate is 79%. This trend has helped improve talent pools and create strong, interconnected tech hubs.

The rise of fintech “Founder Factories”

Here are the top fintech founder factory cities in Europe:

• London: 24 unicorn founder factories, 234 spinouts
• Stockholm: 4 unicorn founder factories, 96 spinouts
• Paris: 10 unicorn founder factories, 70 spinouts
• Berlin: 7 unicorn founder factories, 67 spinouts
• Amsterdam: 5 unicorn founder factories, 37 spinouts

Additionally, many countries have established incubators and innovation hubs to provide startups with the necessary tools and early funding to succeed.

However, due to the cautious investment environment globally over recent years, venture capital activity has been slowing down across the sector at both the European and global levels. In 2024, venture capital funding in the fintech sector continued to slow globally, reaching $29.5B, a 13% decline from 2023 and marking the third consecutive year of decline. 

Early signs of recovery in fintech investment at the global level

At a global level, deal activity followed a similar trend, with 1,806 deals, a decrease of nearly 19% from the previous year. Total venture funding for the sector dropped to $29.5B, marking the lowest level since 2017. It follows a broader cooldown from the record $132.8B peak in 2021. As a result, fintech’s share of total global VC investment, which hit an all-time high of 19% in 2021, has continued to decline.

Investors leaned more toward B2B fintech companies, which took in 41% of all fintech VC funding. Still, B2C fintech companies showed a slight comeback, accounting for 43.2% of total deal value, their highest share since 2021.

Payments continues to be one of the most heavily funded segments in fintech, consistently ranking among the top sectors across multiple years and sources. According to PitchBook, payments attracted $4.4B in venture capital (VC) funding in 2024, making it one of the top three funded categories, alongside alternative lending and CFO tools.

Dealroom data further reinforces this trend. From 2016 to 2024, payments received a total of $141.1B in VC investment, more than any other fintech sub-industry. This long-term lead underscores the sector's pivotal role in driving financial innovation, encompassing digital wallets, money transfer platforms, and payment infrastructure.

The top-funded fintech segments in 2024, according to the same report by PitchBook, were:

• Alternative lending and credit – $8.1B
• Payments – $4.4B
• CFO tools – $4.3B

Despite fluctuations in market conditions, payments have remained a core area of interest for investors due to their scale, ongoing digital transformation, and relevance across both B2B and B2C markets.

At a European level, 2025 is bringing us positive signs of recovery, with €6.3 billion already invested, which is over 70% of last year’s total, indicating that investor confidence is returning. 

Lower interest rates and easing inflation are helping, but the bigger shift is in how fintech startups are being built. Unlike in 2021, when many chased fast growth and burned through capital, today’s companies are leaner, more focused on revenue, and built to last. Investors are responding positively to this new trend, backing startups with clear business models and chances for profitability.

Expectations for 2025 - B2B to continue to gain traction

In terms of trends, virtual IBANs are being highly adopted in 2025 to streamline payment collection and reconciliation by assigning unique identifiers to payees and linking them to a master account. At the same time, advancements in fraud detection and risk management are becoming critical, especially with the expansion of Open Banking. Real-time risk assessments and proactive security measures are being integrated to address growing cyber threats.

Additionally, multiple EU regulations are scheduled to be implemented between 2025 and 2027. These include the Digital Operational Resilience Act (DORA), e-invoicing mandates, updates to the eIDAS regulation, and the introduction of the European Digital Identity (EUDI), as well as new rules under PSD3 and the Consumer Credit Directive (CCD2). European investors predict 2025 will bring a wave of vertical fintech innovation targeting traditional industries such as logistics and manufacturing, as well as streamlined regulation in areas like open banking. High interest rates and economic pressure will keep investors focused on startups with lean operations, strong business models, and sustainable growth.

‍B2B fintech is expected to continue gaining traction, offering more defensible value and growth potential than B2C.

The influence of AI in fintech

AI adoption in finance is growing rapidly across Europe, with organizations increasingly applying it to functions beyond core areas such as accounting and reporting. KPMG’s 2024 global survey found that 71% of companies now utilize AI in their finance departments, with the highest adoption rates in North America, the Asia-Pacific region, and Europe. 

In Europe, usage varies by country; Germany and the UK are among the most advanced, while countries like Italy and Spain are progressing more slowly. However, the overall trend indicates widespread adoption over the next three years, particularly in areas such as financial planning, risk management, and treasury operations.

AI is also being increasingly integrated into the banking sector, particularly to improve customer service, streamline operations, and enhance risk management. According to recent findings, over 75% of global banks have either implemented or are actively testing AI solutions. Every day, use cases include chatbots for customer support, AI-driven credit scoring, real-time fraud detection, and intelligent process automation in back-office functions.

Generative AI is also gaining traction in banking for creating personalized customer interactions, automating content creation, and supporting financial advisory services.

Top European VC funds investing in fintech startups

• Earlybird Venture Capital (Germany) — A European VC firm with dedicated regional teams, Earlybird backs startups across Europe, including Eastern Europe, from early to growth stages. The firm actively invests in fintech infrastructure and WealthTech, with recent deals including those with fintech companies and Midas.
• Eleven Ventures (Bulgaria) — Eleven Ventures invests in fintech startups across CEE with a strong focus on digital transformation, financial inclusion, and scalable B2B solutions. The fund actively supports founders from seed to growth stages with capital, mentorship, and access to cross-border markets.
• EQT Ventures (Sweden) — EQT Ventures is a multi-stage European VC fund investing from early stage to Series B and beyond. With offices in Stockholm, London, Berlin, Paris, and San Francisco, the firm supports tech startups across various sectors, including fintech.
• FF Venture Capital - FFVC (Poland & USA) — FFVC invests in early-stage fintech startups focused on automation, cybersecurity, AI, and digital infrastructure. With a hands-on approach, FFVC supports portfolio companies through active operational guidance and access to both European and US markets.
• Finch Capital (Netherlands) — A fintech-focused VC firm investing across Europe at the Series A and B stages, Finch Capital backs startups in payments, regtech, insurance, and banking software. Past fintech exits include Twisto and Trussle.
• Golden Egg Check (Netherlands) — A Dutch venture analyst firm and investor that collaborates with angels and VCs to fund early-stage startups. It recently backed The Social Handshake, a fintech platform that simplifies salary donations to charity, reflecting its interest in impact-driven financial technology.
• Lakestar (Switzerland) — Lakestar invests in tech startups across Europe from seed to growth stages, with a focus on fintech, AI, digitalisation, healthcare, and DeepTech. The firm supports companies with strategic guidance and sector expertise, aiming to back ventures that drive long-term innovation. Its portfolio includes startups shaping digital infrastructure and financial services.
• Laser Digital (Switzerland) — Backed by global financial group Nomura, Laser Digital focuses on digital assets and fintech innovation across Europe. The fund targets startups building blockchain infrastructure and crypto financial services, with recent investments including ClearToken and BonusBlock.
• Northzone (UK) — Northzone is a multi-stage VC investing from seed to growth stages across sectors, including fintech, healthcare, software, AI, and blockchain. With a focus on long-term partnerships, the firm backs strong founding teams and scalable products, supporting their growth and international expansion from early traction through later stages.
• Speedinvest (Austria) — Speedinvest is a pan-European VC firm investing across all stages, with a focus on fintech, SaaS, deeptech, and other tech-driven sectors. Headquartered in Vienna, it backs startups from pre-seed to Series B funding stages.

Top European fintech events in 2025

• Frankfurt Digital Finance | February 12–13, 2025 | Frankfurt, Germany

Frankfurt Digital Finance brings together financial industry executives, entrepreneurs, and policymakers to exchange insights on innovation, regulation, and digital transformation in the finance sector. The event features keynote talks, panel discussions, and networking sessions.

• ‍Merchant Payments Ecosystem (MPE) | February 18–20, 2025 | Berlin, Germany

MPE brings together payment professionals, merchants, fintech leaders, and payment solution providers to discuss the evolving landscape of merchant payments. The event includes keynote sessions, panels, and networking focused on innovation and collaboration in the payments industry.

• ‍FinovateEurope | February 25–26, 2025 | London, UK

FinovateEurope brings together financial institutions, venture capitalists, and fintech innovators to explore the latest technologies in banking and finance. The event features live product demos, expert panels, and networking opportunities with industry leaders.

• ‍Fintech & Banking Unconference Madrid | February 26, 2025 | Madrid, Spain

This invitation-only event brings together fintech CEOs, investors, and policymakers for off-the-record discussions on trends, challenges, and opportunities in the financial technology and banking sectors. The format encourages open dialogue and peer-to-peer learning.

• ‍PAY360 | March 20–21, 2025 | London, UK

PAY360 brings together payment providers, banks, fintech innovators, and retailers to explore developments in the payments industry. The event features conference sessions, product demos, and opportunities for business networking.

• ‍MRC Barcelona | April 28–30, 2025 | Barcelona, Spain

MRC Barcelona brings together fraud prevention specialists, payment professionals, and merchants to discuss trends, tools, and strategies in e-commerce risk and payments. The event includes workshops, networking sessions, and industry-led panels.

• ‍Digital Money Summit | May 20–21, 2025 | London, UK

Digital Money Summit brings together stakeholders from government, central banking, financial services, and technology to discuss the future of digital currencies and payments. The agenda includes policy discussions, case studies, and expert-led sessions.

• ‍Digital Banking Summit Europe | May 22–23, 2025 | Berlin, Germany

Digital Banking Summit Europe brings together banks, fintech startups, and technology providers to discuss the future of digital banking. The event features sessions on innovation, customer experience, and digital infrastructure, as well as opportunities for networking.

• ‍Money20/20 Europe | June 3–5 | Amsterdam, Netherlands

Money20/20 brings together thousands of founders, investors, banks, and startups to explore innovations in payments, banking, and financial services. Ideal for networking and staying ahead of industry shifts.

• ‍Unchain Festival | June 17-18 | Oradea, Romania 

Focused on the fintech ecosystem in Central and Eastern Europe, Unchain Festival offers a mix of panels, startup pitches, and investor meetups. Ideal for founders seeking to expand into emerging markets and connect with local venture capitalists.

• ‍Banking Transformation Summit | June 18-19 | London, UK

The event brings together digital leaders from global banks and financial institutions to discuss innovation, digital strategy, and transformation in the banking sector. Ideal for fintech startups offering B2B solutions and venture capitalists investing in economic infrastructure.

• ‍IFX EXPO INTERNATIONAL | June 17-19 | Limassol, Cyprus

A B2B fintech expo focused on online trading, payments, and financial services. The event attracts brokers, service providers, and tech firms, offering a networking platform for fintech startups and investors in trading tech and regtech.

• ‍Ethereum Community Conference | June 30 - July 3rd | Cannes, France

The annual Ethereum event brings together developers, researchers, and entrepreneurs from the crypto and Web3 space. An event for founders in blockchain and decentralized finance, and VCs eyeing the next wave of crypto innovation.

• ‍Payments Leaders Summit EU 2025 | September 15-16 | Amsterdam, Netherlands

An invite-only summit for senior payment and fintech leaders, this event focuses on strategy, security, and infrastructure. Ideal for founders in payments and embedded finance, as well as investors targeting this space.

• ‍WFC fintech 2025 Europe | September 22-23 | Amsterdam, Netherlands

Organized by the World Finance Council, this conference examines digital transformation in finance from a global perspective, bringing together C-level executives, fintech founders, and investors.

• ‍Sibos 2025 | September 29 - October 2 | Frankfurt, Germany

Sibos is one of the most established global financial services conferences. Topics include banking, payments, compliance, and innovation. Ideal for gaining institutional-level insights and meeting key economic players.

• ‍Fintech Week London 2025 | October 6-10 | London, UK

A week-long series of events highlighting the UK’s FinTech scene, including conferences, networking mixers, and startup showcases. A great place for founders seeking visibility and investors scouting across various verticals, from insurtech to regtech.

• ‍ePay Europe Summit 2025 | October 28 | London, UK 

A focused event on electronic and digital payments, bringing together payment processors, retailers, and fintech providers. A strong opportunity for startups in payments tech and investors in the consumer finance space.

• ‍FTT Fintech Festival | November 10-11 | London, UK

A fintech conference featuring sessions on digital banking, embedded finance, customer experience, and future tech. Offers great exposure for early-stage startups and targeted networking with fintech VCs.

The fintech rising stars from our SeedBlink community

Additionally, here is a snapshot of fintech startups that have previously raised funding rounds through SeedBlink

• Bankata - A Romania-based startup that helps users make smarter financial decisions through a single, intuitive platform. 
• FilmChain — A UK-based platform that automates revenue collection and royalty payments for the film and TV industry, providing transparent, real-time reporting and faster payments to creators, investors, and rights holders.
• Finqware — A Romania-based platform focused on bridging financial data and operations for banks and enterprises through infrastructure solutions.
• Income — An Estonia-based platform offering a global loan investment marketplace, bringing institutional-grade security features to retail investors through advanced technology.
• Inkitech — A Netherlands-based company offering a subscription-based platform that enables consumers to access, manage, and upgrade tech devices, promoting affordability, flexibility, and a more sustainable digital lifestyle.
• Okredo — A Lithuania-based platform revealing a company's potential and risks, showing its past experiences, and revealing future prospects.
• Woli — A Cyprus-based platform offering a digital wallet and prepaid card designed to help children and teens build healthy money habits, with parental controls and financial education features.

Tap into the next fintech opportunities 

If you're an investor looking to tap into the future of fintech, SeedBlink gives you early access to some of the most promising startups in the space. Stay tuned to discover the platforms transforming how people invest, manage money, and make smarter financial decisions, all while benefiting from a streamlined investment process and a diversified portfolio of fintech innovators. Subscribe to our newsletter below.