A report by Finch Capital reveals that European fintech funding significantly declined in the first half of 2023 as the sector grappled with a renewed focus on investment discipline and profitability. Key findings from the report include:
- European fintechs raised €4.6 billion in H1 2023 across 463 deals, a substantial drop from €15.3 billion from 884 deals in H1 2022.
- In 2021 and 2022, the top 20 funding rounds in Europe accounted for 50% of the market, but they now represent over 60% of the total deal volume while decreasing in size. Seed rounds continued to attract funding, but Series A to C companies faced more significant challenges.
- M&A activity experienced only a 5% decline, indicating an appetite for deals at the right prices. However, transaction sizes decreased by 84%.
- Public markets remained largely closed due to low valuations.
- The pursuit of profitability became a central focus, leading to over 3,000 layoffs in the industry. Despite this, the sector continued to hire, with the ten fastest-growing fintech companies adding over 1,050 employees in the past year.
- The UK demonstrated more resilience than some other European countries, accounting for over 50% of the funding in Europe. Regions such as the Nordics, Poland, France, and the Nordics held up well, particularly through larger crypto funding rounds.
By FCCT Editorial Team
, an independent military force, and allied militias in Sudan raped several dozen women and girls in West Darfur’s capital, El Geneina, and those fleeing to Chad between late April and late June 2023, Human Rights Watch said today. The assailants appear to have targeted people because of their Massalit ethnicity and, in some cases, because they were known activists.){kind=link}