Research & Insights
Finch Capital publishes research on critical technology for Europe's regulated industries and functions
Market Pulse
Executive Summary
January 2026 recorded the lowest FinTech funding value in recent months at just €173M, while Business Tech maintained steady activity with €909M raised across 54 deals. The Finch Index declined to 3.7x EV/Rev and 13.9x EV/EBITDA amid broader market softening.
The standout event was the record €5.3B Allfunds exit in Wealth & Capital Markets. Finance & Ops dominated Business Tech fundraising with MEWS raising €256M and Pennylane securing €175M in landmark rounds.
Key Takeaways
Record Low FinTech Funding: Only €173M raised in January, the lowest value in recent months, with limited deal sizes across all five FinTech sectors.
Allfunds Mega Exit: The record €5.3B Allfunds deal shakes the Wealth & Capital Markets industry, marking the largest FinTech exit of the month.
Finance & Ops Dominates: MEWS (€256M) and Pennylane (€175M) drive standout Business Tech fundraising with strong Pan-European activity.
Legal & Compliance Momentum: Visible momentum in record funding month with €85M, €69M, and €43M raises across regulatory and compliance platforms.
Financial Tech
FinTech records lowest funding value in recent months
- •Only €173M raised in January, the lowest in recent months
- •38 deals closed with UK & Ireland leading (16 deals)
- •Record €5.3B Allfunds exit in Wealth & Capital Markets
Business Tech
Finance & Ops dominates fundraising
- •€909M raised in January across 54 deals
- •MEWS (€256M) and Pennylane (€175M) lead Finance & Ops
- •Legal & Compliance sees visible momentum in record funding month
📊January Highlights
€173M
FinTech Funding Jan
92
Total Deals This Month
13.9x
Finch Index EV/EBITDA
3.7x
Finch Index EV/Rev
Finch Index Business and Financial Technology
Comparing valuation multiples against S&P 500 and NASDAQ 100
EV/Revenue
*As of 31/01/2026; median
EV/EBITDA
*As of 31/01/2026; median
The Finch Index is a proprietary benchmark designed to track the performance of our 9 Business and Financial Technology themes, serving as a relevant industry-specific valuation comparison alongside established indices such as the S&P 500 and the NASDAQ 100. The index is composed of 91 publicly traded companies, with 8 to 10 representative firms across each theme, ensuring a diversified and balanced view of market trends.
Financial Tech
FinTech records lowest funding value in recent months
VC/Growth Value Evolution (€m)
*As of 31/01/2026
VC/Growth Volume this month
*As of 31/01/2026 • Total: 38 deals
Finch Index - EV/EBITDA multiple evolution
*As of 31/01/2026; median
Finch Index - EV/Rev multiple evolution
*As of 31/01/2026; median
Notable Fundraises this month
| Company | HQ | Round Size |
|---|---|---|
| Lunar | 🇩🇰 | €46M |
| Chip | 🇬🇧 | €20M |
| Stoïk | 🇫🇷 | €20M |
Notable Exits this month
| Acquirer | Acquiree | HQ | Est. Size |
|---|---|---|---|
| Deutsche Börse | Allfunds | 🇪🇸 | €5.3B |
| JPMorgan Chase | Wealth OS | 🇬🇧 | <€50M |
| Zilch | Fjord Bank | 🇱🇹 | €32M |
Financial Technology Sector Analysis
🛡️ Insurance Technology
Limited momentum despite steady deal activity. Only €25M raised with focus on B2B cyber insurance and natural catastrophe modelling. Valuations remain muted at 2.0x EV/Rev.
💳 Payments
Subscale activity but funding injected in a diversity of countries. €49M raised across hospitality payments, account-to-account providers, and booking platforms.
🏦 Banking & Digital Currency
Back to normal scale post Revolut mega round. €84M raised with notable deals including MEWS (€46M) and a Nordic neobank (€32M). Digital challenger banks continue to attract investor interest.
📊 Wealth & Capital Markets
Record Allfunds deal shakes the industry. The €5.3B exit marks the largest FinTech transaction of the month. Investment management software and digital wealth platforms remain in focus.
🏠 Lending & Mortgages
Zombie month except from small-cap M&As. Minimal funding activity with deal flow focused on shared equity mortgages and intermediary mortgage platforms at sub-€50M transaction sizes.
Business Tech
Finance & Ops dominates fundraising
VC/Growth Value Evolution (€m)
*As of 31/01/2026
VC/Growth Volume this month
*As of 31/01/2026 • Total: 54 deals
Finch Index - EV/EBITDA multiple evolution
*As of 31/01/2026; median
Finch Index - EV/Rev multiple evolution
*As of 31/01/2026; median
Notable Fundraises this month
| Company | HQ | Round Size |
|---|---|---|
| MEWS | 🇨🇿 | €256M |
| Pennylane | 🇫🇷 | €175M |
| Channelengine | 🇳🇱 | €85M |
Notable Exits this month
| Acquirer | Acquiree | HQ | Est. Size |
|---|---|---|---|
| Docebo | 365Talents | 🇫🇷 | €50-150M |
| Kyndryl | SYMFES | 🇩🇪 | €50-150M |
| ITRS Group | Ekara | 🇧🇪 | €50-150M |
Business Technology Sector Analysis
👥 HR & Payroll
Wagestream welcomes new money under new name. The rebranded salary advance provider raised €77M led by Sofina, while talent management and employer of record platforms saw notable M&A activity.
💰 Finance & Ops
Standout month with strong Pan-European activity. MEWS raised €256M (EQT Growth) for cloud-based hotel management, Pennylane secured €175M (Sequoia) for accounting software, and e-commerce platforms attracted €85M.
⚖️ Legal & Compliance
Visible momentum in record funding month. Enterprise regulatory compliance (€85M), real estate legal compliance (€69M), and AI-powered contract drafting (€43M) platforms led the activity.
🔧 IT & Data
Belgium stands out with unicorn deal. Cloud security and startup ecosystem platforms attracted funding, while notable exits included Digital Experience Monitoring and maritime software acquisitions.