Europe’s fintech industry is showing signs of recovery as several outsized cryptocurrency deals have driven 2025’s total fintech deal value to more than three-quarters of last year’s total.
According to PitchBook data, fintech VC dealmaking dramatically declined following its peak in 2022, with the total amount invested dropping by nearly 60%. However, since the start of 2025, there has been a rebound in activity. Investors have poured €6.8 billion into the vertical, with much of the capital coming via a handful of deals in the cryptocurrency space.
At the current run rate, 2025 is on pace to mark fintech’s highest annual deal value total yet. Fintech has accounted for over 30% of the region’s total deal value this year, compared with 14.3% last year.
Over 40% of the capital invested in fintech startups belongs to just two deals. Europe’s largest fintech round this year was Abu Dhabi-based MGX’s $2 billion investment in cryptocurrency exchange Binance in April. A month later, UK-headquartered cloud mining infrastructure provider DRML Miner raised $1 billion from backers including Nomad Capital, No Limit Holdings and Sky9 Capital.
Outside those two deals, cryptocurrency deals are also helping to drive fintech deal value. UK-based cloud mining platform XY Miners secured a $300 million Sequoia-led investment, while German embedded finance startup Solaris raised €140 million.
The EU’s digital currency regulation went into effect Jan. 1, providing unified rules for the region’s crypto market. Key goals were to help companies scale more easily across the EU and enhance investor confidence in the market.
New funds have emerged to further Europe’s crypto market. Amsterdam-based Maven 11 closed its third fund on $170 million last month, and in April, Prague-based RockawayX launched a $125 million vehicle.
Even excluding the Binance and DRML Miner deals, fintech deal value is still pacing to surpass 2024’s total and be the third-best year for total capital raised. Deal count is on track to remain relatively flat compared with last year.
Much of the recovery in Europe’s fintech vertical is happening at the later stages, both in terms of deal value and number. The number of late-stage rounds is projected to be 13.9% higher than in 2024. Early-stage still accounts for the largest share of overall deal count this year, but its percentage has dropped.
Much of the recovery in Europe’s fintech vertical is happening at the later stages, both in terms of deal value and number. The number of late-stage rounds is projected to be 13.9% higher than in 2024. Early-stage still accounts for the largest share of overall deal count this year, but its percentage has dropped.
Featured image by Eugene Mymrin/Getty Images
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