European FinTech funding halved in 2024 & How dacadoo is boosting healthcare outcomes and lowering costs &

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How dacadoo is boosting healthcare outcomes and lowering costs - A landmark study by the University of Groningen has demonstrated the tangible financial benefits of digital health engagement, revealing that insurers can cut healthcare costs by up to 5.3% over the next two years. The research, which analysed a major Dutch health insurer’s data, highlights the potential of digital platforms to drive user engagement and reduce the strain on healthcare systems. At the forefront of this transformation is dacadoo, whose second-generation platform not only enhances engagement but also leverages AI and behavioural science to optimise underwriting and dynamic pricing.

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Research highlight

European FinTech funding halved as deals $100m and over dropped in 2024

Key European FinTech investment stats for 2024:

• European FinTech funding halved in 2024
• Deals $100m and over dropped by 48% as investors became more selective
• Zepz, a London-based leading digital money transfer service, secured one of the largest European FinTech deals for the year with a $267m funding round

European FinTech funding halved in 2024

The European FinTech market experienced a sharp decline in both deal volume and total funding in 2024.

The year closed with 1,050 deals, marking a 62% drop from the 2,787 deals recorded in 2023 and a 68% decline from the 3,295 deals seen in 2020.

Total funding in 2024 amounted to $18.4bn, representing a 47% decrease from the $34.6bn raised in 2023 and a similar 47% decline from the $34.3bn secured in 2020.

The average deal size in 2024 stood at $17.5m, reflecting a 41% increase from $12.4m in 2023 and an 84% rise from $9.9m in 2020, indicating a shift towards fewer but larger deals as investors focus on select high-value opportunities.

Deals $100m and over dropped by 48% as investors became more selective

Funding from deals under $100m totalled $8.8bn in 2024, down 46% from the $16.3bn recorded in 2023 and also 45% lower than the $16bn seen in 2020.

Meanwhile, larger deals valued at $100m or more accounted for $9.6bn, a 48% decline from the $18.3bn raised in 2023 and a similar 48% drop from the $18.3bn secured in 2020.

This substantial fall in high-value transactions signals a more cautious approach from investors, who are adjusting their strategies amid shifting economic conditions and increased market uncertainty.

The overall downturn in funding and deal volume highlights the ongoing challenges faced by the sector, as capital becomes more selective and risk appetite continues to wane.

Zepz, a London-based leading digital money transfer service, secured one of the largest European FinTech deals for the year with a $267m funding round

The funding round was led by Accel, with participation from Leapfrog, TCV, and the International Financial Corporation, which pledged up to $20m.

The funding will drive Zepz’s expansion in its core African markets and beyond, as the company continues to address the fragmented remittance industry by offering cost-effective digital solutions that replace traditional cash transfers.

Having achieved full-year profitability in 2022, Zepz is leveraging its strong operational foundation to explore opportunities for further growth, including potential acquisitions of smaller firms.

Founded in 2010 with a mission to reduce the high transaction fees in cross-border money transfers, Zepz has grown into a global remittance powerhouse, supporting underserved communities during times of need and driving financial inclusion through its innovative platform.

Weekly FinTech deal roundup

Quiet week for FinTech deals with 23 recorded – There were only 23 deals recorded across the FinTech sector this week by FinTech Global with $399m being raised overall. Read the full story here.

InsurTech news

• Overcoming GLM limitations: How to improve pricing model accuracy - When analysts begin working in pricing, their first instinct is often to dive straight into modelling. Generalised Linear Models (GLMs) are a standard approach, commonly taught as the foundation for pricing models. It is easy to get caught up in testing different variables, applying transformations, and searching for interactions. However, focusing solely on model mechanics can cause analysts to overlook fundamental limitations, according to Quantee. Read the full story here.
• Why prompt engineering is the key to smarter underwriting and pricing - Generative artificial intelligence (GenAI) is rapidly reshaping the financial services sector, offering insurers and lenders new ways to enhance efficiency, improve accuracy, and personalise customer interactions. Earnix, a leader in AI-driven decision-making solutions, highlights how GenAI is automating routine tasks, allowing teams to focus on more strategic initiatives that drive business growth. Read the full story here.
• Novidea upgrades insurance management platform to boost efficiency - Novidea, a provider of cloud-based, data-driven enterprise insurance management solutions, has announced a raft of updates to its insurance management platform designed to boost its effectiveness in policy management, claims administration, billing, accounting, document and file management, and other key areas. Read the full story here.

WealthTech news

• Devexa launches secure trading community feature within broker platforms - Devexa, the AI-powered trading assistant developed by Devexperts, has unveiled a new community feature designed to enhance trader engagement within broker ecosystems. Read the full story here.
• Multiply Mortgage secures $23.5m to transform employee mortgage benefits - Multiply Mortgage, a firm known for integrating homeownership benefits into employment packages, has closed a $23.5m Series A funding round. Read the full story here.
• Chetwood Bank launches competitive fixed rate savings options for UK savers - Chetwood Bank, a UK-based digital challenger bank, has introduced a new range of fixed rate savings accounts, offering customers a selection of short-, medium-, and long-term savings options with competitive interest rates. Read the full story here.

RegTech news

• How financial institutions can tackle top risks in 2025 with AI technology - As 2025 unfolds, financial institutions face an evolving array of challenges. The recent Executive Perspectives on Top Risks Study conducted by Protiviti and NC State University, which garnered insights from over 1,200 board members and executives, sheds light on the primary concerns encompassing financial crime compliance, AI integration, and increasing regulatory oversight. Read the full story here.
• Muinmos teams up with Africa Due Diligence to drive financial trust in Africa - Muinmos has entered into a partnership with Africa Due Diligence, a UK-based provider of AI-powered due diligence and risk intelligence. Read the full story here.
• How Theta Lake harmonises employee engagement with compliance in Workvivo - In the evolving landscape of work, particularly in hybrid and remote settings, tools that enhance connectivity and engagement, like Zoom’s Workvivo, are becoming indispensable for fostering a vibrant workplace culture. Read the full story here.

CyberTech news

• Google Cloud expands footprint with $32bn acquisition of Wiz - Google has completed the acquisition of Wiz, expanding its influence in the rapidly growing cloud computing and cybersecurity sectors. Read the full story here.
• VulnCheck raises $12m Series A to boost exploit intelligence expansion - VulnCheck, a cybersecurity company specialising in exploit intelligence, has secured $12m in a Series A funding round. Read the full story here.
• Cybersecurity startup Hawcx raises $3m to advance passwordless authentication - Hawcx, a cybersecurity startup focused on passwordless authentication, has raised $3m in a pre-seed funding round. Read the full story here.

ESG FinTech news

• British Business Bank backs Elbow Beach with £50m to fuel UK Climate Tech - Elbow Beach, a seed investor focused on climate technology, has secured a significant commitment. Read the full story here.
• Apave Group acquires Aktio to enhance sustainability services - Aktio, established in 2020 in France, is a notable expert in carbon accounting and sustainability, certified as a B-Corp since 2022. Read the full story here.
• Upright launches database for CSRD double materiality assessments - Upright, an impact data company, has launched a database designed to enhance the sustainability practices of over 50,000 companies globally. Read the full story here.

Other FinTech news

• Enhancing compliance and risk management through real-time data - In the ever-evolving landscape of financial regulation, staying compliant while efficiently managing risks presents significant challenges. Read the full story here.
• CFTC warns of rising AI-facilitated financial frauds - In a crucial update from the CFTC, the OCEO has issued a warning about the growing use of generative AI in fraud schemes. Read the full story here.
• Qlarifi secures £1.4m pre-seed funding to enhance BNPL credit transparency - Qlarifi, a FinTech start-up focused on improving credit reporting for Buy Now, Pay Later (BNPL) transactions, has successfully closed its pre-seed funding round. Read the full story here.