The UK remained Europe’s leading WealthTech market in the second quarter of 2026, accounting for 22% of all deals despite a broad slowdown in sector activity. Across Europe, WealthTech funding and transaction volumes declined significantly compared with both the same period in 2025 and the previous quarter.
European WealthTech Deals Fall 21% Year Over Year
European WealthTech companies completed 37 funding deals in Q2 2026. This represented a 16% decline from the 44 transactions recorded in Q2 2025 and a 21% decrease from the 47 deals completed in Q1 2026.
Total investment fell even more sharply. Companies raised $185.5m during the quarter, down 73% from the $698m secured in Q2 2025 and 46% below the $343.2m raised in the first quarter of 2026.
The average deal size also contracted substantially, dropping to $5m from $15.9m a year earlier and $7.3m in Q1 2026. The decline indicates that larger funding rounds became less common as investors adopted a more cautious approach to the European WealthTech market.
UK Remains Europe’s Top WealthTech Hub
The UK maintained its position as the most active European WealthTech market in Q2 2026, with eight deals representing 22% of all transactions. However, its lead narrowed considerably compared with the same quarter last year.
In Q2 2025, UK-based companies completed 19 deals and accounted for 43% of European WealthTech activity. The latest figures therefore reflect a 58% drop in deal volume and a substantial reduction in the UK’s share of the regional market.
France retained second place, increasing its deal count from five in Q2 2025 to six in Q2 2026. Its share of total activity rose from 11% to 16%, giving the country a stronger position within Europe’s shrinking WealthTech investment landscape.
Germany also remained in third place. German WealthTech companies completed four deals in Q2 2026, up from three transactions a year earlier. Their share of European activity increased from 7% to 11%, representing a 33% rise in deal volume.
Although the ranking of the leading three markets remained unchanged, the UK’s retreat was the most significant development. France and Germany proved more resilient as overall activity declined, resulting in a more evenly distributed WealthTech market across Europe’s leading hubs.
Bunch Raises $35m in Series B Funding
One of the largest European WealthTech transactions of Q2 2026 came from Bunch, a German company that provides technology infrastructure for private markets. The company raised $35m in a Series B funding round led by Portage.
The round also included new investor Illuminate Financial, alongside existing backers Motive Partners, Cherry Ventures, FinTech Collective and a group of angel investors. The latest financing brings Bunch’s total funding to more than $58m.
Founded in 2021, Bunch supports more than 150 fund managers and 12,000 limited partners. Its platform combines secure data infrastructure, artificial intelligence-powered workflows and fund services across the investment lifecycle.
The company’s offering covers digital investor onboarding, fund administration, accounting and tax reporting. It is designed to address the fragmented systems often used by European fund managers operating across multiple jurisdictions.
Bunch plans to use the new capital to expand across Germany, Luxembourg and the UK. The funding will also support greater automation and artificial intelligence integration across key processes, including capital calls, compliance management and investor reporting.
Read more of the latest FinTech research.
Source: Fintech.global
日本語
한국어
Tiếng Việt
简体中文