Research & Insights
Finch Capital publishes research on critical technology for Europe's regulated industries and functions
Market Pulse
Executive Summary
Q1 2026 sees FinTech hit by a cooling market with €792M raised so far, including 43 deals in February alone, while Business Tech public comps nosedive amid "SaaSpocalypse" concerns with €1,294M raised across 30 deals. The Finch Index declined sharply to 3.0x EV/Rev and 11.0x EV/EBITDA.
Insurance activity picks up with the €152M PINION deal, while the Totalmobile €575M exit headlines HR & Payroll. Legal & Compliance sees a lucrative month driven by AI & regulatory deals.
Key Takeaways
FinTech Hit by Cooling Market: €792M raised in Q1 2026 so far, with 43 deals in February and insurance activity picking up on the €152M PINION deal.
SaaSpocalypse Hits Public Comps: Business Tech multiples nosedive with the Finch Index dropping to 3.0x EV/Rev and 11.0x EV/EBITDA — the sharpest decline in recent history.
Totalmobile €575M Exit: HR & Payroll headlines with the FLS acquisition of Totalmobile, the largest BizTech exit of the month.
Legal & Compliance Surges: AI & regulatory deals drive a lucrative month with Lawhive (€50M), FYLD (€47M), and DUNA (€30M) raising significant rounds.
Financial Tech
FinTech hit by cooling market and reduced deal volume
- •€792M raised in Q1 2026 so far (43 deals in February)
- •Insurance picks up with PINION (€152M) and Lassie (€63M)
- •radian acquires INIGO for €1.4B in Insurance exit
Business Tech
Comps nosedive amid SaaSpocalypse talks
- •€1,294M raised in February across 30 deals
- •FLS acquires Totalmobile for €575M in HR & Payroll
- •Legal & Compliance surges with AI & regulatory deals
📊February Highlights
€792M
FinTech Funding Q1 '26
73
Total Deals This Month
11.0x
Finch Index EV/EBITDA
3.0x
Finch Index EV/Rev
Finch Index Business and Financial Technology
Comparing valuation multiples against S&P 500 and NASDAQ 100
EV/Revenue
*As of 28/02/2026; median
EV/EBITDA
*As of 28/02/2026; 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 hit by cooling market and reduced deal volume
VC/Growth Value Evolution (€m)
*As of 28/02/2026
VC/Growth Volume this month
*As of 28/02/2026 • Total: 43 deals
Finch Index - EV/EBITDA multiple evolution
*As of 28/02/2026; median
Finch Index - EV/Rev multiple evolution
*As of 28/02/2026; median
Notable Fundraises this month
| Company | HQ | Round Size |
|---|---|---|
| Allica Bank | 🇬🇧 | €128M |
| Lassie | 🇸🇪 | €63M |
| mea | 🇬🇧 | €42M |
Notable Exits this month
| Acquirer | Acquiree | HQ | Est. Size |
|---|---|---|---|
| radian | INIGO | 🇬🇧 | €1.4B |
| rezolve | Reward | 🇬🇧 | €198M |
| Admiral | FLOCK | 🇬🇧 | €93M |
Financial Technology Sector Analysis
🛡️ Insurance Technology
Activity picks up despite declining multiples. PINION raises €152M for specialty insurance, Lassie secures €63M for digital pet insurance, and mea raises €42M for AI-native insurance automation.
💳 Payments
Sees weak activity beyond the Apexx deal. Finch Capital leads the €8M Apexx round for payment orchestration, while stablecoin and purpose-driven payment platforms attract smaller rounds.
🏦 Banking & Digital Currency
Returns to baseline activity on the Allica Bank deal. The UK digital bank raises €128M for full-stack lending and deposit services. myinvestor (€30M) and Porters also close rounds.
📊 Wealth & Capital Markets
Holds momentum as funding weakens. STS Digital (€26M), Bound (€21M for FX hedging), and Sidekick (€9M) lead activity. Notable exits include Wrisk/atto, ELECO/Kivue, and Arcesium/Limina.
🏠 Lending & Mortgages
Slight uptick following last month's record low. One Dome (€29M), Tembo (€18M for digital savings and mortgage platform), and Tangible (€4M for climate hardware financing) close rounds.
Business Tech
Comps nosedive amid SaaSpocalypse talks
VC/Growth Value Evolution (€m)
*As of 28/02/2026
VC/Growth Volume this month
*As of 28/02/2026 • Total: 30 deals
Finch Index - EV/EBITDA multiple evolution
*As of 28/02/2026; median
Finch Index - EV/Rev multiple evolution
*As of 28/02/2026; median
Notable Fundraises this month
| Company | HQ | Round Size |
|---|---|---|
| Lawhive | 🇬🇧 | €50M |
| FYLD | 🇬🇧 | €47M |
| hublo | 🇫🇷 | €40M |
Notable Exits this month
| Acquirer | Acquiree | HQ | Est. Size |
|---|---|---|---|
| FLS | Totalmobile | 🇬🇧 | €575M |
| KEENSIGHT | DecisionFocus | 🇨🇭 | €50-150M |
| sdworx | paie&rh | 🇫🇷 | <€50M |
Business Technology Sector Analysis
👥 HR & Payroll
Northern Ireland makes headlines with the €575M Totalmobile M&A by FLS. hublo raises €40M for healthcare workforce management and Veremark secures €19M for candidate verification.
💰 Finance & Ops
Stable activity with continuously falling multiples. Stacks (€19M), Circit (€19M for audit confirmation), and Fabacus (€15M) close rounds. Notable exits include Kravia/Billecta and zevero/Inhabit.
⚖️ Legal & Compliance
Sees lucrative month driven by AI & regulatory deals. Lawhive (€50M), FYLD (€47M for frontline intelligence), and DUNA (€30M for compliance infrastructure) lead activity. KEENSIGHT acquires DecisionFocus.
🔧 IT & Data
Strong activity persists despite continued declining multiples. Dwelly (€37M for AI-enabled real estate), VulnCheck (€21M for cyber threat intelligence), and ALPA (€4M) close rounds.
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Market Pulse - January 2026
Record low FinTech funding at €173M as Allfunds €5.3B exit shakes Wealth & Capital Markets