SME underwriting infrastructure in emerging markets (esp. MENA)
⚙️ Series B: Proving Scalability—Not Just Growth
The Series B bar has risen sharply. Median round sizes range $24–30M, but the scrutiny around scalability, margin structure, and CAC discipline has intensified.
Investors want:
Repeatable GTM
Efficient customer acquisition at scale
Real product stickiness (DAU/MAU ≠ retention)
Defined path to cash-flow positivity or strategic acquisition readiness
Notable themes:
Embedded credit platforms with enterprise anchors
Treasury-as-a-Service targeting CFOs of multi-entity firms
Cross-border B2B payments with a regulatory edge
🏦 Series C: Liquidity Path or Bust
At the Series C level, capital is flowing—but only to companies with defined exit paths, profitability levers, or strategic alignment.
Investors are looking for:
Clear buy-side interest (e.g., infra-layer FinTechs attractive to banks or cloud providers)
Embedded finance plays with deep integrations in vertical SaaS
Compliance tech scaling cross-region with Tier 1 clients
There is no room for companies still chasing “growth at all costs.” Most Series C rounds getting done are inside rounds, down rounds, or structured with ratchets, unless the company is outperforming the 2021 cohort.
📉 What’s Out of Favor
Across A–C stages, these verticals are consistently getting passed over:
Consumer Neobanks: High CAC, low LTV, saturated UX
Overbuilt BNPL: Especially in the US/EU, where margin compression and regulatory threats loom
🌍 Regional Nuance
🇺🇸 U.S.:
Valuation discipline is back. Burn multiples matter.
Top funds are leading or passing—rarely coasting in the middle.
🇪🇺 Europe:
Strong pipeline of RegTech, treasury, and SME infra players.
Series A still the most active; Series B thins out quickly without commercial traction.
🌍 MENA:
Larger Series A rounds (~$10–12M) with sovereign and bank-backed capital.
Infrastructure plays—especially those aligned with Vision 2030 or cross-border rails—are outperforming.
Bottom Line for VCs
The FinTech rebound is real, but not broad. Your Series A–C portfolio should be anchored in:
Infrastructure (infra > interface)
Compliance and B2B financial systems
AI where it augments risk, ops, or sales velocity—not just UI
The winners are solving pain at the core of financial institutions and enterprise back offices—not in the consumer front end.
CTA: We support institutional investors with FinTech deal flow analysis, strategic diligence, and capital allocation insight across North America, Europe, and MENA.
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