11 hours ago
Ireland's fintech surge defies global investment slowdown
Global fintech investment dropped to its lowest point in seven years in 2024, falling from $119.8 billion (€105 billion) in 2023 to $95.6 billion, according to KPMG's Pulse of Fintech report. But in Ireland, the story was different. Irish fintechs raised $237.95 million across 25 deals, marking a 291 per cent increase year-on-year.
In a cautious market, the Republic's numbers stand out. And while part of the increase reflects a rebound from a soft 2023, analysts and insiders agree there's more behind the headline.
Much of the capital flowed into companies moving beyond early-stage experimentation. Investors showed a preference for businesses with validated products, credible teams, and scalable compliance strategies. Payments infrastructure and regtech firms led the way, supported by a broader shift toward regulated, enterprise-grade solutions.
Mid-stage deal sizes increased, suggesting that Irish fintech is maturing, not just in ambition, but in operational depth.
Connor Cantwell, partner at COSIMO Digital, has seen the momentum up close. His firm focuses on blockchain and digital asset infrastructure, a smaller segment, but one that's highly active.
Conor Cantwell, partner at COSIMO Digital.
'The market in Ireland is small, that's for sure, but it's very dynamic,' he says. 'You've got a lot of people building, testing, and pushing new ideas forward. But when you look at high growth percentages in a smaller market, you have to remember it often doesn't take a huge movement to drive those numbers.' Cantwell points to the Solana Superteams initiative and TechStars accelerator as good examples of innovation coming through. But he also notes that access to funding remains a consistent challenge.
'Capital is always hard to find. It doesn't matter what sector you're in,' he says. 'Some of the strongest products we've seen have been self-funded to date. They're ready to scale, but local capital can only take them so far; they're now reaching out internationally.' COSIMO's own project, Fortuna Digital Custody, is currently navigating the MiCA transition under the Central Bank of Ireland. 'It's a heavy lift,' he said. 'But if you want to operate in this space, being on the regulated side is where you want to be.'
Ireland's appeal to investors and international firms lies in more than tax or geography. Regulatory clarity, institutional support and a consistent talent pipeline have helped create a stable environment in an otherwise volatile global market.
Government agencies such as Enterprise Ireland and IDA Ireland have helped with positioning and promotion, while the Central Bank's evolving frameworks have made it easier, though not effortless, to launch compliant financial products.
One of the clearest endorsements of Ireland's fintech ecosystem came from Stani Kulechov, founder and chief executive of Avara, the company behind protocols including Aave and Lens. Avara opened its Dublin office with eight developers but quickly expanded to add operations and compliance hires. The company now anticipates further growth in the months ahead. Kulechov was in Dublin to speak at both the Blockchain Ireland and ETH Dublin events in May.
Stani Kukechov, founder
'Dublin stood out as the ideal location for Avara's European headquarters thanks to its deep talent pool, thriving fintech ecosystem and regulatory clarity,' he said. 'We're investing in Dublin not just as a base for EU expansion, but as a long-term partner in building open, user-first digital and financial technologies. Our goal is to contribute to Ireland's leadership in fintech innovation while scaling solutions that give people more control over their financial and online lives.' Avara's move signals that Ireland is no longer just a launch pad for early-stage start-ups. It's becoming a strategic base for growth-stage fintech and Web3 firms looking for a regulated, English-speaking EU hub with global reach. At its peak, Aave held more than $37 billion in deposits, making it one of the most used DeFi protocols in the world.
While the 2024 investment figures are strong, the test will come in follow-through: continued access to capital, meaningful exits and the ability to scale while maintaining compliance. A small number of large deals may have skewed the year's totals, but there's clear evidence of broader maturity across the ecosystem.
As international capital keeps looking for reliable footholds in Europe, Ireland's ability to blend innovation with regulation may prove to be its biggest asset yet.
