The European WealthTech sector experienced a significant downturn in funding during the second quarter of 2026, with investment plummeting 46% quarter-over-quarter. This sharp decline signals growing caution among investors, who are now committing smaller amounts per deal amidst wavering confidence in the market.
Steep Drop in Funding and Deal Activity
WealthTech companies across Europe secured only $185.5 million through 24 deals in Q2 2026. This marks a severe 73% year-over-year decrease from the $698 million raised across 32 transactions in the same period last year. Compared to the first quarter of 2026, when $343.2 million was invested across 34 deals, funding has nearly halved, accompanied by a notable reduction in deal volume.
Average Deal Size Falls as Investors Tighten Belts
Average deal value in the European WealthTech space dropped to $7.7 million per transaction in Q2 2026, the lowest level recorded over the past five quarters. This represents a 24% decline from the $10.1 million average seen in Q1 2026 and a substantial 65% fall from the $21.8 million average in Q2 2025. The trend underscores a shift toward smaller, more cautious investments as market uncertainty persists.
Bunch Leads with $35 Million Series B Round
Bunch, a German WealthTech firm specializing in infrastructure for European private markets, stood out as one of the quarter’s top deals by raising $35 million in a Series B funding round. Led by Portage and supported by new investor Illuminate Financial alongside existing backers like Motive Partners and Cherry Ventures, this infusion brings Bunch’s total capital to over $58 million.
Founded in 2021, Bunch serves over 150 fund managers and 12,000 limited partners through a platform that unifies secure data systems, AI-driven workflows, and comprehensive fund services. The company addresses critical infrastructure gaps in European private markets, where fund managers have long relied on outdated, fragmented tools unsuitable for multi-jurisdictional operations.
The new funding will fuel Bunch’s expansion across Germany, Luxembourg, and the UK, while advancing automation and AI integration in core operations such as capital calls, compliance, and reporting.
Source: Fintech.global
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