European fintech startups continue to rely heavily on U.S. investors for large funding rounds, even as the region strengthens its position across product, talent, and infrastructure. According to a new report from Finch Capital, companies such as Revolut and Klarna have built globally competitive platforms but remain dependent on U.S. capital for late-stage growth, as well as on American cloud providers and payment systems. The report estimates that without U.S. investors, Europe would face a roughly €9 billion funding gap, particularly for rounds above €100 million, where domestic capital remains limited.
At the same time, that gap is beginning to narrow. European fintechs raised nearly €40 billion in venture and growth funding between 2022 and 2025, with the U.K. leading the region and London emerging as the largest fintech hub globally by funding value. Policymakers are increasingly looking to domestic institutions, including pension funds, to support larger rounds and reduce reliance on external capital. While U.S. backing still plays a central role in scaling breakout companies, the report suggests Europe is gradually building the financial and regulatory foundation needed to support its own growth at scale.
