August 28, 2020

European fintechs have raised over $3bn since lockdown began, but where's that money gone?

Consumer apps and insurtechs have dominated fintech investment in recent months

Isabel Woodford

4 min read

Europe’s fintech startups have continued raising vast amounts of capital over the lockdown period, attracting around €2.86bn ($3.4bn) in investment between March and mid-August, according to Dealroom data.

Despite a brief funding blip in March, the second quarter of 2020 saw fintechs rake in €1.7bn; only slightly down on the €2bn raised in the first quarter.

Investors have — for the most part — continued to back fintechs in the last few months, with a particularly strong performance in May.

It’s not yet clear how badly fintechs’ valuations have been affected in recent months, but according to PitchBook, investors in Europe seem confident that long-term macro trends (including accelerated digital adoption) will “broadly favour” the sector.


Still, not all sub-sectors within fintech have attracted the same level of investor backing since Covid-19 broke out. 

The analysis below breaks down the monthly funding data by sub-sector, including payments, banking, wealthtech, lending and insurtech, to understand how each area of fintech has performed with venture capitalists* in recent months. 

European fintech fundraising by sector 2020
Note: Consumer finance covers digital banking apps like N26, consumer credit-providers like Klarna, wallets like Curve, and money management tools like Fintonic. Meanwhile, the capital markets segment encompasses professional trading and market data firms.

* PitchBook's data focuses only on VC-backed fintechs.

Key takeaways

Source: PitchBook