The number of European fintech startups raising Series B and C rounds has almost halved over the past year, according to the article. As investors increasingly concentrate their money on a handful of standout companies, the rest of the market has felt the pressure. The funding drought has made growth rounds harder to close and slowed the flow of capital to many fintech firms.
The report points to a sharp decline in the number of companies reaching that stage, as the conditions that once supported rapid scaling have shifted. With investors focusing on fewer winners, startups outside that group have struggled to find follow-on funding. The dynamic has changed how the sector approaches capital, with caution and selectivity taking hold.
For Europe's fintech sector, the split between winners and losers is becoming more pronounced. Standout companies continue to attract investment, while many others face longer gaps between rounds and greater difficulty raising growth funding.
Source: Sifted · Summarized by HeadlinesBriefing