Finance
London overtakes san francisco, new york as top FinTech hub, hedge fund says
Published by Global Banking & Finance Review®
Posted on March 12, 2026
2 min readLast updated: March 12, 2026
Quick Summary
London has become the world’s top FinTech hub, surpassing San Francisco and New York, as European FinTech funding rose sharply and reached parity with the U.S. at €40 billion each, driven by strong UK leadership and London’s dominance.
London Overtakes US Cities as Leading Global FinTech Investment Hub
European FinTech Funding Surges Ahead of US Counterparts
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 hedge 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.
Key Findings from Finch Capital Data
Late-Stage Funding Challenges
- Late-stage funding remains a challenge, as every European round over one billion euros was led by U.S. investors
Policy and Investment Gaps
- Nine billion euros discrepancy is "a policy gap, not a market verdict", Finch Capital partner Aman Ghei says
- European pension funds allocate just 0.02% of assets to venture capital, significantly lagging the U.S. rate of 1.9%. Bridging this gap could unlock 37.5 billion euros annually, Finch Capital estimates
Strength in Regulatory-Intensive Verticals
- Ghei highlighted Europe's strength in regulatory-intensive verticals, with CFO office and regulatory software firms achieving a 2.54x return, compared to 1.31x in the U.S
Corporate Investment Opportunities
- Ghei also pointed to corporate investment opportunities that U.S. companies are seizing more aggressively, citing ASML's investment in AI firm Mistral as an example
European Capital Availability
- European capital exists and reliance on U.S. investors is not a necessity, he added
Expert Commentary
(Reporting by Leo Marchandon in Gdansk; Editing by Matt Scuffham)
Key Takeaways
- •European FinTech funding surged 37 % from 2022 to 2025, matching U.S. levels at €40 billion each, positioning London as the leading global hub (Finch Capital).
- •London commands the largest share of European FinTech investment—UK captured over 50 % of region’s funding in H1 2025; London alone accounted for ~79 % (Finch Capital).
- •Late‑stage rounds over €1 billion in Europe are led by U.S. investors; European pension funds underinvest in VC (0.02 % vs. 1.9 %), indicating policy, not capital, is the barrier (Finch Capital).
Frequently Asked Questions about London overtakes San Francisco, New York as top FinTech hub, hedge fund says
1Why has London overtaken San Francisco and New York as the top FinTech hub?
London rose to the top due to a 37% increase in European FinTech funding and declining investment in major US hubs, according to Finch Capital.
2How much did European and US FinTech funding reach?
FinTech funding reached an equivalent of 40 billion euros in both Europe and the United States.
3What challenges remain for European FinTech funding?
Late-stage funding remains challenging, as every European deal over one billion euros was led by US investors.
4How do European pension funds compare to US funds in venture capital allocation?
European pension funds allocate only 0.02% of assets to venture capital, compared to the US rate of 1.9%.
5What sectors are European FinTech firms excelling in?
Europe shows strength in regulatory-intensive verticals such as CFO office and regulatory software, achieving higher returns than US firms.
