2024年欧洲金融科技状况-英国占主导地位，中型并购蓬勃发展，融资危机促进可持续发展

UK Dominates, Midsized M&A Thrives, and Funding CrisisSpurs Sustainability Introduction Welcome to Finch Capitals 9th edition of theState of European FinTechreport in whichwe further examine the growing influence of FinTech in Europe. As previously, wecontinue to focus on macro levers in FinTech in Europe including exit dynamics, valuation,funding growth as well what we believe our key trends for the next year. Finch Capital partners with ambitious founders in financialand business technology verticals by backing teams to buildand grow capital efficiently. We invest €5-15m in companiesgenerating €2-15m in ARR. We help accelerate the path toprofitable scale by allowing founders and team to maintaincontrol and provide liquidity for certain stakeholders as well.We’ve invested in±50 companies includingFourthline,Goodlord,eFlow, ZOPA,AccountsIQ,NomuPayandLavanda. Our report is structured as follows:1. State of European FinTech,2. State of FinTech inKey European Countriesand3. 8 Trends Shaping FinTech It continues to be a challenging operating environment for all players in theecosystem,although we are starting to see some green shoots. This was another year of contraction,but there is light at the end of the tunnel particularly in the exit market. It is crucial to bealigned with the potential buyer universe (strategic or private equity) particularly interms of valuation and structure as we come out of this reset. More emphasis is nowplaced on profitability than revenue growth with the European low to mid-market M&Aecosystem starting to thrive. While funding might seem to be dropping, it is a function ofthe hard work companies went through last year in getting close to breakeven. Finch Capital consists of a team of 12 investmentprofessionals with wide entrepreneurial experience locatedacross offices in Amsterdam, London and Dublin. For moreinformation seewww.finchcapital.comand subscribe to ournewsletter. EugénieColonnad’lstriaAssociateeugenie@finchcapital.com RadboudVlaarManagingPartnerradboud@finchcapital.com JoeMcHaleAnalystjoe@finchcapital.com AmanGheiPartneraman@finchcapital.com State of FinTech covers the 5 sectors of Financial Technology we focus on …State ofBusinessTechto be published later in 2024 Executive Summary:UK Dominates, Midsized M&A Thrives,and Funding Crisis SpursSustainability 2024 continued to been a turbulent year for European FinTech.Although funding continued to decline, the sector is much moreresilient withsome green shoots on the horizon. European FinTechcontinued to have a thriving mid-market M&Aalmost the same size asthe US, but as one of Europe's largest sector, it needs to prove it canconsistentlyexit unicorns. The UK dominates the European ecosystemeven morenow,with 65% of the funding landing in the UK UK Dominates, while Netherlands and Nordics remain resilient, and Governments are stepping uptheir role to continue to provide funding to the ecosystem •UK coming strong out of the turbulence, representing now 65% of volume•Ireland, Germany, France and Spain have seen large govt initiatives to fuel growth in 2025•Nordics and the Netherlands have been a resilient surprise with funding holding up, with moreLeveraged Buyout investments showing more mature profitable companies•Poland needs more opportunities in Series A to B stages AI has taken the FinTech sector by storm, with several public announcements from insurers or BNPLplayers on the success they have had in implementing these solutions Please find some of the key observations: •Funding dropped by 25% as fewer deals came to market and lessfunding is required post the focus on profitability;•Higher interest rates resulted in record profits for Challenger Banksand attracted large rounds (Monzo,Revolut) which gave a boost tofunding combined with the end of the crypto winter;•Growth companies with higher EBITDA margins achieve higherrevenue multiples (10x+), More emphasis is now placed on EBITDAmargin than revenue growth;•Unicorn chasing is subdued, with a strong European market for lowto mid market M&A almost similar in size versus the US while largecap being 2-3x smaller;•Battle is on with incumbents as they are hiring in tech much moreaggressively thanFinTechs Outlook for 2025: Continued focus on profitability and consolidation and breakthrough for stablecoins•Sustainable business models: This will continue to be the theme for the foreseeable future, and weexpect investors to keep pushing for capital efficient growth•Key areas we foresee strong momentum the next 6 to 12 months are:•Insurers going all in on AI•Other consumer sectors learning from banking to become profitable•Strategic payments M&A to counter PE payments M&A•Fundamental shift in wealth& asset management with market intelligence access key•Rebound of BNPL•Compliance driving decision making•Seriousness of stablecoin’s offering for institutional investors State ofEuropeanFinTech Evolution of“Modern FinTech”from consumer to deep technologyinfrastruc