Finch Capital – State of European FinTech, 2024

Finch Capital's 9th edition of the State of European FinTech report explores the growing influence of FinTech in Europe, focusing on exit dynamics, valuation, funding growth, and key trends for the next year. The report is structured into sections covering the state of European FinTech, FinTech in key European countries, and trends shaping FinTech. While the operating environment remains challenging, there are signs of improvement, especially in the exit market. Finch Capital partners with founders in financial and business technology sectors, investing €5-15m in companies generating €2-15m in ARR. The report notes a decline in funding, increased profitability focus, record profits for challenger banks, and a strong European mid-market M&A scene. Key observations include a drop in funding, Challenger Banks' record profits, higher EBITDA margins leading to revenue multiples, subdued unicorn chasing, and growing competition from incumbents. The UK dominates the European FinTech ecosystem with 65% of funding.