London has overtaken San Francisco and New York to claim the top spot among global financial technology hubs, according to data released by hedge fund Finch Capital. The firm reported that European FinTech funding reached parity with the United States for the first time, driven by a 37% rise in investment across Europe between 2022 and 2025.
Finch Capital's figures, published on Thursday, show investment in the leading U.S. hubs fell 13% over the same period. As a result, both regions now register an equivalent 40 billion euros in FinTech funding, the data indicate.
Despite the headline parity in overall funding, Finch Capital highlighted persistent weaknesses in Europe’s late-stage financing market. The firm noted that every European round exceeding one billion euros was led by U.S. investors, underscoring continued dependence on overseas capital for the largest deals.
Aman Ghei, a partner at Finch Capital, described the remaining shortfall as structural rather than a market verdict. He characterized a nine billion euros discrepancy as "a policy gap, not a market verdict," and flagged differences in institutional allocation as a central factor.
Finch's analysis points to a very low venture capital allocation by European pension funds - just 0.02% of assets - compared with a 1.9% allocation in the United States. The hedge fund estimates that closing this allocation gap could free up as much as 37.5 billion euros annually for venture investments.
Ghei also highlighted areas where European companies have demonstrated competitive strength, particularly in regulatory-intensive verticals. According to Finch Capital's data, firms in the CFO office and regulatory software categories delivered a 2.54x return in Europe, compared with a 1.31x return for comparable U.S. companies.
At the same time, Ghei pointed to a more aggressive posture from U.S. corporate investors when it comes to strategic stakes, citing ASML's investment in AI firm Mistral as an example of that dynamic. He added that capital is available in Europe and that dependence on U.S. investors is not strictly necessary.
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The Finch Capital data and related commentary sketch a picture of a European FinTech landscape that has closed the headline funding gap with the U.S., while exposing policy and institutional allocation issues that underpin continued reliance on American late-stage capital.