Sifted - Which fintechs will IPO in 2025?

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Looking back on 2024, bankers and lawyers perhaps weren’t quite as busy as they’d hoped to be: European tech M&A slumped last year, with deal count down about 11% from 2023, according to preliminary data from PitchBook. Though the number of deals struck last year took a hit, one big IPO — Spanish luxury beauty and fashion company Puig’s $2.8bn debut — helped boost deal value above the prior year. But of course everyone is searching for signs in the tea leaves that 2025 will see more action — and that the IPO window will, at long last, crack open. 

Readers: what do you think? Will 2025 be a good year for startup M&A? If so, who’ll be buying? Are you noticing any unique or weird deal terms? I’m all ears. 

Elsewhere today: 

• Which European fintech will be the next to IPO? 
• The tech events Sifted will be attending in 2025
• 14 predictions for French tech in 2025

— Anne Sraders, senior reporter

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🏡 London-founded coworking company Second Home has been saved from the brink by its management team. The startup’s colourful workspaces were once a popular meeting spot for London’s tech elite, but the company has struggled to maintain momentum after years of losses.

• The buyout, led by senior managers, means Second Home will continue operating coworking spaces at its Spitalfields and Holland Park locations in London, and in Lisbon, even as the company enters administration. 
• In a statement, CEO Jamie Apostolou said the acquisition was the only way to keep the company alive. “Second Home remains a strong brand, and our values haven’t changed,” he said.

Stay two steps ahead of the European tech market

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🤑 Which European fintech will be the next to IPO? 

🎪 The tech events Sifted will be attending in 2025 — including, of course, the Sifted Summit. 

🇫🇷 14 predictions for French tech in 2025.

🇫🇮 Five unicorns and under 6m people: What makes Finland's startup ecosystem different? (Sponsored by Business Finland)

M&A in European tech slowed in 2024. There were 858 exits of VC-backed companies in Europe last year, down about 11% from 2023 and 37% fewer than the frenzied days of 2021, according to new PitchBook data (which could still change as further deals are announced).

But one banker at Drake Star tells Sifted he thinks we’ve “reached the bottom now” — and AI, defence and mission-critical enterprise software startups could have a bumper year.

Dresden, Germany-based Sunfire, which is working on green hydrogen production technology, raised €200m in debt funding. Commerzbank led the round and was joined by investors including Société Générale, BNP Paribas, LBBW and Ostsächsische Sparkasse Dresden.

• The company makes electrolysers — hardware that splits water into hydrogen and oxygen — which are powered by renewable energy. It last raised a €500m Series E round in March, made up of debt, equity and grant funding.

Dublin-based FIRE1, a medtech startup which helps monitor heart failure patients’ health via a sensor, belt and an app, raised $120m in funding. Polaris Partners and Elevage Medical Technologies led the round and were joined by new investors including Longitude Capital and Sands Capital.

• Its devices are not yet approved for clinical use. 

Copenhagen-based Orbis Medicines, a drug discovery startup, raised €90m in Series A funding. New Enterprise Associates led the round and was joined by investors including Eli Lilly, Cormorant, Export and Investment Fund of Denmark, Novo Holdings and Forbion.

London-based Nothing Technology, a smartphone and headphone maker, raised £30m in debt funding from Santander UK.

Dublin-based Deciphex, which develops software and AI tools for pathologists, raised €31m in Series C funding. Molten Ventures led the round and was joined by investors including ACT Venture Capital, Seroba, Charles River Laboratories, IRRUS Investments, HBAN Medtech Syndicate and Nextsteps Capital.

Plymouth, UK-based Altilium, which has developed a way to extract critical minerals from old EV batteries, raised $5m in Series B funding from Marubeni Corporation. 

If you’d like to submit a deal, get in touch. 

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How to find your product-market fit in 2025. Finding product-market fit goes beyond just solving a problem — it needs to resonate with the right customers in the right market. Join this virtual and free Sifted Talks on January 22 and uncover all you need to know about finding — and maintaining — PMF. RSVP.

How to build a modern finance team. In a tough-to-raise environment, how are CFOs preparing their teams for the year ahead? What tactics are driving growth and profits? Join this Sifted Talks on February 26 to find out. RSVP.