European fintech saw a resurgence in 2024, with investments climbing 10% to $8.7 billion, driven by a surge in early-stage funding rounds and bolstered by record levels of venture capital ready to back ambitious startups.
Europe’s fintech sector recorded a significant milestone in 2024, with investments climbing 10% to $8.7 billion, up from $7.9 billion in 2023, according to Dealroom.co. The rise signals a renewed confidence in one of the continent’s most dynamic tech industries, buoyed by mega-rounds such as Monzo ($605 million), WorldRemit ($267 million), Sequra ($211 million), and Alan ($178 million). Early-stage funding played a pivotal role, with nearly 90% of the 1,000 funding rounds taking place at this critical phase, pointing to a vibrant pipeline of innovation.
This fintech growth reflects broader trends in Europe’s venture capital (VC) ecosystem. Total VC funding across all sectors has soared to 4.2 times the $12.6 billion raised in 2014, while unicorn creation has expanded tenfold, with 579 unicorns compared to just 59 a decade ago. Entering 2025, the continent boasts $31 billion in dry powder—capital available for investment—marking the second-strongest year on record and fueling expectations for another robust year ahead.
While the United Kingdom maintained its lead as Europe’s top destination for VC investment with $16.2 billion raised in 2024, its 11% year-over-year decline created opportunities for other hubs to shine. Germany posted a 4% increase to $8.2 billion, with Munich surpassing Berlin to become the country’s most funded city. France, with $7.8 billion in investments, remained a key player but slipped behind Germany in total funding.
Smaller markets also saw notable growth, signaling the diversification of Europe’s tech landscape. Belgium, the Netherlands, and Switzerland recorded funding increases of 25%, 12%, and 10%, respectively. Some of the continent’s largest funding rounds in 2024 underscored this geographical shift, including Wayve in the UK ($1.1 billion), Poolside AI in France ($500 million), Helsing in Germany ($459 million), and Picnic in the Netherlands ($362 million).
Healthcare technology overtook energy as Europe’s most funded sector, attracting $10.8 billion in investment. This surge underscores the rising prominence of healthtech companies addressing global challenges with innovative solutions. Swiss-based EraCal Therapeutics, UK-based Flo Health (Europe’s first femtech unicorn), and Germany’s ITM Radiopharma exemplify the sector’s forward momentum.
Enterprise tech also enjoyed a banner year, with funding rising 27% to $9.3 billion. AI-powered solutions were a significant driver of this growth, enabling European businesses to adopt cutting-edge tools. Notable contributors include Paris-based Mistral, London-based Lighthouse, and Cologne-based DeepL, which continue to push the boundaries of artificial intelligence.
Europe’s $31 billion in dry powder—the second-largest total in history—signals an era of abundant opportunity for startups and scaling businesses. Founders across the continent are increasingly building companies with global ambitions, backed by a maturing ecosystem that supports innovation at scale.