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Fintech

Fintech frenzy to stall as talent war and Europe’s IPO slowdown hurts startups

Rising interest rates, growing costs and increased M&A activity are set to challenge the fintech landscape

Fintech dominated European venture capital funding in the first half of 2021, with large unicorns including Klarna and Rapyd taking the lion's share of raises
Fintech dominated European venture capital funding in the first half of 2021, with large unicorns including Klarna and Rapyd taking the lion's share of raises Photo: Getty Images

Record levels of private and venture capital funding for European fintech companies could diminish next year as mature startups focus on mergers and acquisitions and multiple emerging factors tar their growth.

Rising interest rates, pressure on salaries and costs from seeking top talent, increased regulatory scrutiny and delayed exits thanks to a slowdown in public markets are among the issues facing fintech’s largest businesses, a report by growth investor Finch Capital has warned.

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