Research & Insights
Finch Capital publishes research on critical technology for Europe's regulated industries and functions
Market Pulse
Executive Summary
December 2025 marked a strong close to Q4 for European Financial and Business Technology, with significant deal activity across both sectors. The market demonstrated resilience with notable M&A transactions including Mollie's €1.1B acquisition of GoCardless and Proofpoint's €1.8B acquisition of Hornetsecurity.
The Finch Index maintained steady performance at 4.2x EV/Rev and 15.6x EV/EBITDA, tracking closely with major indices. Banking & Digital Currency saw exceptional funding driven by crypto-related activity, while UK continued to dominate deal flow.
Key Takeaways
UK-led FinTech Activity: A largely UK-led month for fintech activity with 29 deals, driven by payments and banking rounds including Sokin's €43M raise.
Mega M&A Deals: Mollie's €1.1B acquisition of GoCardless reshapes the European payments market, while Proofpoint's €1.8B Hornetsecurity deal dominates Business Tech.
Crypto Funding Surge: Banking & Digital Currency funding centered around crypto this month with notable raises from REAL, LI.FI, and Bitstack.
AI-Driven Consolidation: Signs of maturity as AI-driven M&As emerge across Legal & Compliance with acquisitions in legal intelligence platforms.
Financial Tech
A largely UK-led month for fintech activity
- •€4.5B raised in December with Banking & Digital Currency leading
- •29 deals closed this month with UK & Ireland leading (12 deals)
- •Mollie's €1.1B acquisition of GoCardless reshapes payments market
Business Tech
Mega German cybersecurity deal steals the show
- •€839M raised in December across 56 deals
- •Major exit: Proofpoint acquired Hornetsecurity for €1.8B
- •M&A emerges as most notable source of HR & Payroll activity
📊December Highlights
€4.5B
FinTech Funding in Q4
85
Total Deals This Month
15.6x
Finch Index EV/EBITDA
4.2x
Finch Index EV/Rev
Finch Index Business and Financial Technology
Comparing valuation multiples against S&P 500 and NASDAQ 100
EV/Revenue
*As of 31/12/2025; median
EV/EBITDA
*As of 31/12/2025; 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
A largely UK-led month for fintech activity
VC/Growth Value Evolution (€m)
*As of 31/12/2025
VC/Growth Volume this month
*As of 31/12/2025 • Total: 29 deals
Finch Index - EV/EBITDA multiple evolution
*As of 31/12/2025; median
Finch Index - EV/Rev multiple evolution
*As of 31/12/2025; median
Notable Fundraises this month
| Company | HQ | Round Size |
|---|---|---|
| Sokin | 🇬🇧 | €43M |
| Oxbury | 🇬🇧 | €40M |
| Coremont | 🇬🇧 | €35M |
Notable Exits this month
| Acquirer | Acquiree | HQ | Est. Size |
|---|---|---|---|
| Mollie | GoCardless | 🇬🇧 | €1.1B |
| Incore Invest | Worldline | 🇫🇷 | €160M** |
| Monzo | Habito | 🇬🇧 | €50-150M |
Business Tech
Mega German cybersecurity deal steals the show
VC/Growth Value Evolution (€m)
*As of 31/12/2025
VC/Growth Volume this month
*As of 31/12/2025 • Total: 56 deals
Finch Index - EV/EBITDA multiple evolution
*As of 31/12/2025; median
Finch Index - EV/Rev multiple evolution
*As of 31/12/2025; median
Notable Fundraises this month
| Company | HQ | Round Size |
|---|---|---|
| Ben | 🇬🇧 | €23M |
| Sequence | 🇬🇧 | €17M |
| ANKAR | 🇬🇧 | €17M |
Notable Exits this month
| Acquirer | Acquiree | HQ | Est. Size |
|---|---|---|---|
| Proofpoint | Hornetsecurity | 🇩🇪 | €1.8B |
| Aceve | Syntess Software | 🇳🇱 | €50-150M |
| Main Capital | Planon | 🇨🇭 | €50-150M |
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