Fintech VC valuations race ahead in Europe

Leah Hodgson

Sat, February 14, 2026 at 5:45 AM GMT+9 2 min read

Orbon Alija/Getty Images

Despite AI dominating the headlines with mega-rounds at astronomical valuations, fintech startups continue to command higher median VC valuations in Europe.

The median pre-money valuation for fintech startups reached €12.4 million (about $14.7 million) last year, according to PitchBook’s 2025 Annual European VC Valuations Report. AI startups trail by 29%, while SaaS and life sciences are 26% and 21% below fintech, respectively.

The gap between fintech and AI is most pronounced at the earlier stages. The median valuation for pre-seed and seed fintech startups was €7.8 million—exactly €2 million more than for AI. In Series A-B rounds, fintech’s median valuation of €56.2 million far exceeded AI’s of €40.1 million.

The gap suggests that investors may be pricing in risk more aggressively for AI startups than for other sectors, such as fintech, even though terms sheets are signed more quickly and include fewer economic and governance protections.

Even at the early stages, fintech business models are well established, with clear comparables. Meanwhile, AI startups often build in an environment of rapidly changing technology, where long-term differentiation can be harder to assess early on.

Deal volume also plays a role in the valuation differences. Last year, there were three times as many VC deals for Europe’s AI startups as there were in fintech, broadening the mix of funded startups. As investors seek greater exposure to AI, these startups are raising capital more easily, whereas in fintech the bar remains higher for investment. Investors’ flight to quality in fintech pushed the median higher.

Latest Research European VC Valuations Report The 2025 Annual European VC Valuations Report delves into the sizes and valuations of European venture deals. 4 hours ago

Still, this doesn’t mean that AI is losing momentum. Valuations for startups in the category are rising much faster year over year. The median overall for AI grew 21.6% from 2024, compared with 6% for fintech.

Whether AI valuations catch up with fintech will depend on whether the market corrects or funding continues to accelerate, as it has over the last few years. If funding for AI becomes tighter, investors could become more selective, focusing on startups with greater defensibility and, possibly, larger valuations.

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This article originally appeared on PitchBook News

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