London overtakes San Francisco, New York as top FinTech hub, growth capital fund says

(Corrects company description to growth capital fund from hedge fund in headline and lede)

By Leo Marchandon

March 12 – 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 growth capital 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 Europeanround over one billion euros was led by U.S. investors * Nine billion euros discrepency is “a policy gap, not amarket 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,Finch Capital estimates * Ghei highlighted Europe’s strength in regulatory-intensiveverticals, with CFO office and regulatory software firmsachieving a 2.54x return, compared to 1.31x in the U.S * Ghei also pointed to corporate investment opportunitiesthat U.S. companies are seizing more aggressively, citing ASML’sinvestment in AI firm Mistral as an example * European capital exists and reliance on U.S. investors isnot a necessity, he added

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