Key European WealthTech investment stats in Q1 2026:
- European WealthTech funding dropped by 18% YoY in Q1
- Average deal value dropped by 42% to $10.1m as investors grew cautious
- Upvest, an API-driven investment infrastructure provider serving banks, brokers and wealth managers across Europe and the UK, raised $90m in a funding round, making it one of the biggest European WealthTech deals of the first quarter
European WealthTech funding dropped by 18% YoY in Q1
The European WealthTech market raised $343.2m across 34 deals in Q1 2026.
That represents an 18% decline in funding from the $418.3m recorded across 24 transactions in Q1 2025, even as deal volumes rose by 42%.
Against Q4 2025, the contrast is sharper still.
That quarter attracted $826.9m across 24 deals, meaning Q1 2026 funding came in 59% lower despite a considerably higher number of transactions.
Rising deal activity alongside falling aggregate funding is the defining feature of Q1 2026, pointing to a market where capital is being spread across more opportunities but at a reduced scale.
Average deal value dropped by 42% to $10.1m as investors grew cautious
The European WealthTech sector’s average deal value in Q1 2026 stood at $10.1m per transaction.
That is 42% below the $17.4m average recorded in Q1 2025 and well short of the $34.5m average seen in Q4 2025, which remains the high point across the dataset.
The pattern is consistent across both comparisons.
While investor engagement has broadened, as the higher deal count suggests, the appetite for larger individual commitments has clearly cooled.
Capital is being deployed more widely, but in smaller amounts than at any point in the preceding year.
Upvest, an API-driven investment infrastructure provider serving banks, brokers and wealth managers across Europe and the UK, raised $90m in a funding round, making it one of the biggest European WealthTech deals of the first quarter
The round was led by Sapphire Ventures and Tencent, with participation from Bessemer Venture Partners and BlackRock.
Berlin-based Upvest provides regulated infrastructure supporting trading, custody and back-office operations, enabling financial institutions to offer investment services without building these systems in-house, and currently processes more than 100 million client orders annually across over 30 institutions including Revolut, N26, DKB and Raisin.
The raise comes just 12 months after the company’s Series C and will be used to enhance local tax handling capabilities, simplify the deployment of pension products across European markets and develop AI-supported investment features leveraging real-time execution APIs.
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