LONDON—During Q2 the European fintech sector recorded 201 transactions, marking a sharp drop of nearly 75% from the 793 deals completed during the same quarter last year and a 55% drop from the 452 funding rounds in Q1 2024, a new analysis has found.
The total fintech funding raised in Q2 2024 amounted to $4.6 billion, representing a decrease of 53% from the $9.8 billion raised in Q2 2023, Fintech Global reported.
“The top 10 deals in Q2 2024 were spread across seven different countries, highlighting a broadening geographic distribution of fintech activity in Europe,” according to the report. “The U.K. continued to lead, securing four deals, while the Netherlands, Serbia, Sweden, Turkey, Ireland, and Switzerland each had one top deal each.
“This indicates a shift towards a more diverse landscape compared to Q2 2023, where the U.K. dominated with six deals, and Italy, Norway, Germany, and France each had one top deal each,” Fintech Global added. “Notably, the U.K. remains the only country represented in the top 10 deals for both Q2 2023 and Q2 2024.”
One Positive Trend
The report added that a positive trend for the overall fintech market in 2024 so far has been the growth of the average deal size.
“This trend was apparent in this market too, with the average deal value during the second quarter increasing to $22.9 million from $12.4 million during Q2 2023. This is an 85% increase in average deal value and an indicator of the investors’ growing appetite in the space,” Fintech Global stated.