Caution among investors led to a 46% reduction in wealthtech funding in Q2 this year.

According to FinTech Global Research, the funding fell from $343.2 million in Q1 to just $185 million.

The statistics continue a decline in funding levels from the previous year – funding for Q4 2025 was $826.9 million.

There was also a reduction in the number of deals, from 34 to 24 as well as their average value, which fell by 24% to $10.1 million.

According to FinTech Global, the decline is due to investor caution.

“Investors are not only completing fewer deals but are doing so with considerably greater caution, committing smaller amounts per transaction as confidence in the European WealthTech market has waned,” states the report.

The largest deal done this quarter involved German wealthtech Bunch, which provides infrastructure for private markets, raising $35 million in a series B financing round.