London Overtakes San Francisco and New York as Top FinTech Hub
By Reuters | 12 Mar, 2026

A 37% growth surge in European FinTech funding between 2022 and 2025 contrasts sharply with a 13% decline in US hubs.

London has overtaken San Francisco and New York as the world's largest financial technology hub, as European FinTech funding achieved parity with the United States for the first time, according to data released by hedge fund Finch Capital.

European FinTech funding grew 37% between 2022 and 2025, while investment in top U.S. hubs declined 13%, reaching an equivalent 40 billion euros each, according to data published by Finch Capital on Thursday.

Late-stage funding remains a challenge, as every European round over one billion euros was led by U.S. investors

Nine billion euros discrepancy is "a policy gap, not a market verdict", Finch Capital partner Aman Ghei says.

European pension funds allocate just 0.02% of assets toventure capital, significantly lagging the U.S. rate of 1.9%.  Bridging this gap could unlock 37.5 billion euros annually, inch Capital estimates

Ghei highlighted Europe's strength in regulatory-intensiveverticals, with CFO office and regulatory software firms achieving a 2.54x return, compared to 1.31x in the U.S   Ghei also pointed to corporate investment opportunities that U.S. companies are seizing more aggressively, citing ASML's investment in AI firm Mistral as an example European capital exists and reliance on U.S. investors is not a necessity, he added

(Reporting by Leo Marchandon in Gdansk; Editing by Matt Scuffham)