In 2023 there were 2,454 unique investors who participated in European FinTech funding rounds although, surprisingly, none of the top 10 investors from 2022 appear on last year’s list. RegTech was the most active European FinTech subsector in 2023 with 275 deals, a 16.7% share of total deals. This was followed by Blockchain & Digital Asset technologies with 247 deals, a 14.7% share of total deals. The third most active subsector was WealthTech with 245 deals, a 14.6% share of deals.
Techstars, a pre-seed investor tech investor, was the most active European FinTech investor in 2023 , participating in 28 deals. The latest Techstars Fintech update came form the Techstars Boulder Accelerator which has announced a specialized B2B FinTech thesis for its July 2023 accelerator program, focusing on infrastructure tools and vertical SAAS products in the FinTech space. Sylvia Bouloutas, an Investment Associate at Techstars, authored a white paper delving into the history of FinTech innovation, highlighting the importance of AI/ML tools and cutting-edge technology. The white paper emphasizes the potential for B2B FinTech innovation in areas like comprehensive products for SMBs/SMEs, vertical-specific solutions, and infrastructure/API tools that integrate into existing systems. It also discusses the benefits of verticalization, including low churn, low customer acquisition cost, high conversion rates, competitive advantage, trust, and potential for partnerships. The paper concludes by underlining the significance of APIs in facilitating communication and data exchange between different financial systems and automating various financial processes, ultimately streamlining financial services.
