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Fintech Startups Can't Find Investors
Funding for fintech is down, Spanish climate fund raises €300 million, and more...
SearchVentures
July 03, 2024
Fintech might not be invincible after all
Startup funding for fintech suffered a significant decline last year, but there are still a handful of them able to convince investors of their business model.
Why is funding down, and what sets the successful fintechs apart?
This Week’s Trends
• European fintech funding is down 66%
• Seaya closes €300 million and more on Weekly News
• The 5 most promising startups raising capital
Read Time: 2 minutes
The Startup Trend
Fintech Investments are down 66%
European fintech funding by quarter, 2020-2023
European fintech funding was down by 66% in 2023 compared to 2022, the lowest since 2017, marking a significant decline in investment activity. The total funding in Q1 2023 was $2.5B, down from $10B in Q1 2022.
> Economic uncertainties and rising interest rates have made investors more cautious, reducing the interest for riskier investments in fintech startups.
> With many fintech sectors becoming increasingly saturated, investors are more selective, preferring to back established players over new entrants.
💡 Payment fintech startups suffered the most due to the high user growth requirements, while investors shifted focus towards profitability over growth. Despite this, asset management startups are piquing interest, especially those capitalizing on 'the great wealth transfer'.
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This Week In Startups ✍️
Founders
> GlassPoint raises a $2.5 million investment from MIG Capital for solar steam facilities.
> ObraLink, a London-based contech startup, raises €1.8 million to automate and speed up the construction process
> ISPTech, secures €2 million pre-seed to make a greener space economy starting from Germany
Investors & VCs
> Seaya Ventures closes €300 million climate fund, bringing its assets under management to €650 million and making it the largest venture firm in Spain.
> Vsquared closes second fund of €214 million to cash in on Europe’s early-stage deep tech boom.
> MiddleGame Ventures, a Luxembourg-based VC firm focusing on fintech, has hit the first close of a targeted €150 million fund, raising roughly €55m.
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Odin Lund & Hari Mohandas
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