European Fintech Funding Sees Sharp Decline
European fintech companies secured significantly less funding in H1 2026, reaching the lowest point in over a decade. Investment has shifted towards AI-native startups.
The European fintech sector experienced a substantial downturn in investment during the first half of 2026 (H1), marking the lowest figures in over a decade. According to analysis by Deloitte and Sifted, fintech firms collectively raised approximately €6.7 billion in H1 2026. This represents a 15.8% decrease from H1 2025 and a 28.1% drop compared to H1 2024.
Amidst economic uncertainty and increased competition, investors are increasingly favoring companies focused on Artificial Intelligence (AI) and deeptech over traditional fintech. Benjamin Joannelli, an analyst at Dealroom.com, noted, "If you're not AI-native, you're not getting funded."
Data indicates a strong trend towards AI: AI-native startups saw their funding increase by 147.6% year-on-year, raising €598 million in H1 2026. In contrast, the funding for broader fintech companies decreased by 20.4%.
While the overall fintech landscape faces challenges, certain sub-sectors, such as regulatory technology (regtech), continue to attract significant investment. For instance, UK-based regtech startups secured €216 million in 2026, indicating continued interest in specialized fintech solutions.