FinTech isn’t dead. It’s disciplined.
Q1 2025 saw $13.9B raised across 949 private financing rounds, a strong signal that investor appetite is back. But the days of speculative rounds built on narratives are gone. Series A and B capital is going to fewer companies, with stricter expectations and a clear preference for infrastructure and capital efficiency.
Investors aren’t asking for hype—they’re asking for answers.
Financial Management Solutions are leading the way—with over $9B raised globally in Q1 alone. This includes:
Spend controls
Embedded treasury
FP&A automation
If your product saves companies money or unlocks real-time visibility into cash and cost, you're in the right room.
RegTech is resurging—particularly in Europe and MENA. Regulatory pressure is intensifying, and investors love:
Recurring SaaS
Sticky enterprise contracts
Cross-border applicability
Embedded Credit & SME Lending are still attractive—but only where CAC is low and distribution is built-in. MENA and emerging markets are outperforming due to unmet credit demand and strong government-aligned ecosystems.
Cross-border B2B Payments Infrastructure is heating back up, especially in Europe. Think:
API-led FX and AML
Compliance tools
Middleware rails
If you’re touching financial plumbing with high frequency and clear monetization, VCs are paying attention.
And yes, AI-native FinTechs are getting funded—but only when the AI replaces headcount or meaningfully improves margins. Investors aren’t backing AI-wrapped dashboards—they’re backing tools that power risk, fraud, collections, and ops automation.
Consumer Neobanks have hit a wall.
Unless your CAC is magically low and your margins are positive, investors have moved on.
Token-driven Crypto / DeFi startups are dead in the water.
Unless you're building infrastructure, custody, or institutional rails, capital has dried up.
BNPL is past its peak—especially in the US and EU.
Softening consumer credit and pending regulation have frozen appetite.
D2C InsurTech isn’t moving either.
Without proprietary distribution or underwriting edge, your pitch deck isn't getting opened.
Budgeting & Personal Finance Apps are out of favor.
Engagement is irrelevant if you’re not monetizing. DAUs don’t get you funded.
🇺🇸 United States
Series A median: ~$13.5M
Series B median: ~$30M
Investors are back to the basics: burn multiples, CAC/LTV, and GTM clarity
🇪🇺 Europe
Series A median: ~$11M
Series B median: ~$24M
Focus areas: RegTech, infrastructure, B2B SaaS—selectivity is high, but the checks are real
🌍 MENA
Series A rounds skew large: $9–12M
Strong tailwinds from sovereign wealth funds, CVCs, and infrastructure-led growth
Focus on: Islamic finance, SME credit, payroll and payment rails, compliance
Investors have capital, but their tolerance for ambiguity is gone.
What they want:
A real product solving a recurring, expensive problem
Operational discipline (not just “vision”)
Clear monetization and unit economics
Efficient GTM motion—preferably already in motion
What they’re avoiding:
Founders still pricing rounds off 2021 dreams
Startups confusing “traction” with “traffic”
Business models that burn through capital to prove vague demand
📣 Ready to Raise? Start Before You Need To.
We help founders navigate the capital markets with precision and realism—across the US, EU, and MENA.
Start early. Shape the story. Secure the right partner.
—
Tom
Securities Offered through Wellesley Hills Securities. Member FINRA/SIPC