Key European FinTech investment stats in Q1 2025:
European FinTech funding fell by 26% YoY in Q1 2025UK firms secured a third of the top 10 European FinTech deals as they dominated the regionSolaris, a German Banking-as-a-Service (BaaS) provider enabling companies to integrate digital banking, payments, lending, and compliance solutions without holding a banking licence, secured one of the largest European FinTech deals of the quarter with a $145m Series G funding round
European FinTech funding fell by 26% YoY in Q1 2025
In Q1 2025, the European FinTech sector raised $5.4bn across 185 deals, representing a 26% decline in funding and a steep 59% drop in deal volume compared to Q1 2024, which recorded $7.3bn raised over 456 deals.
This sharp downturn reflects both reduced investor appetite and a more selective funding environment, as macroeconomic headwinds and tighter capital markets continue to weigh on early-stage and growth investments.
The disproportionate fall in deal count relative to capital raised suggests that larger, later-stage funding rounds are sustaining total investment figures, even as early-stage activity softens across the continent.
UK firms secured a third of the top 10 European FinTech deals as they dominated the region
The United Kingdom remained the dominant player in both quarters, though its share of top 10 deals decreased from six in Q1 2024 to three in Q1 2025, highlighting a relative cooling of its leadership position.
Germany and France maintained a consistent presence, with one top deal each in both periods.
However, The Netherlands, which secured one of the top 10 deals in Q1 2024, dropped out of the rankings in Q1 2025.
In contrast, new entrants such as Switzerland (two top deals), Malta, Portugal, and Jersey emerged, pointing to a broader diversification of FinTech activity across smaller or previously underrepresented markets.
This shift signals a gradual dispersion of capital beyond the traditional Western European powerhouses, as investors increasingly explore innovation hubs in niche or emerging financial jurisdictions.
Solaris, a German Banking-as-a-Service (BaaS) provider enabling companies to integrate digital banking, payments, lending, and compliance solutions without holding a banking licence, secured one of the largest European FinTech deals of the quarter with a $145m Series G funding round
The investment, led by Japan’s SBI Group alongside existing client Boerse Stuttgart Group and several other strategic partners, also marks a significant shift in Solaris’ ownership, with SBI acquiring a majority stake.
The capital injection comes amid ongoing restructuring efforts, including a reduction of Solaris’ workforce by one-third and the divestment of its UK-based Engage business.
The funding will support the Berlin-based firm’s path to profitability, bolster its core capital base, and accelerate market expansion opportunities.
Following a $100m financial guarantee in 2023 to back a major contract with ADAC and a prior $100m raise in its Series F, this latest round brings renewed momentum as Solaris continues to evolve from its $1.6bn valuation in 2021 into a more resilient, growth-oriented BaaS leader.
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