Fintech funding plummets to a seven-year low, raising questions among founders about the merits of self-funding versus venture capital investments.
Global fintech investment falls worldwide, but payments sector thrives with $31 billion in funding
London, UK - Fintech investment worldwide dipped to its lowest level since 2017, with a reported $95.6 billion across 4,639 deals, according to KPMG's latest Pulse of Fintech report. The UK specifically saw a 25% decrease in investment year-on-year, which marks the weakest level since the pandemic's peak.
Despite the overall fintech investment slump, payments stood out as a rare bright spot, seeing a rise in global investment to $31 billion - an increase from $17.2 billion the previous year. Analysis points to infrastructure innovation, market consolidation, and improved investor confidence as key drivers for growth.
In the changing fintech investment landscape, focus has shifted from growth at all costs to sustainability, leading to renewed scrutiny of the funding paths chosen by founders. This topic will be discussed at the Money20/20 Europe 2025 conference, where two prominent fintech leaders, Dima Kats and Babs Ogundeyi, will debate the strategies for building and scaling a fintech under pressure.
Kats, CEO and founder of Clear Junction - one of Europe's fastest-growing companies according to the FT1000 2025 - bootstrapped the company without external capital. Ogundeyi, on the other hand, relied on venture funding to launch and expand Kuda, a Nigerian neobank now serving millions of customers.
"It's no longer about who raises the most; it's about who builds something that lasts," says Kats. "Bootstrapping forced us to focus on efficiency, product-market fit, and real value – not hype."
"We had no time to lose. Millions were excluded from the financial system. Venture funding helped us build quickly alongside knowledgeable and experienced people to meet their urgent needs," says Ogundeyi.
With investor appetite returning cautiously in 2025 - albeit with more conservative deal sizes and increased expectations - the discussions centering on the pros and cons of bootstrapping and venture funding are expected to resonate with founders, funders, and policymakers alike.
The session, Bootstrapping vs. Backers: The Fintech Funding Showdown, will address themes including whether either business could have survived on the other's funding path, the trade-offs between control, speed, and mission, and the impact of funding models on strategy in emerging versus developed markets. It will also explore what both leaders wish they had known at the start of their journeys.
The session will be moderated by Simone Ishikawa, founder of fintech and impact startup consultancy ishikoo.
The discussion is scheduled for 11:30 am - 12:00 pm, on Thursday, 5th June, at the Off The Record Stage during Money20/20 Europe. More information about the conference's full agenda is available here.
For more information about Clear Junction, visit: https://clearjunction.com/
About Clear Junction
Clear Junction facilitates cross-border payments for regulated financial institutions, focusing on operational security backed by strong compliance and risk management practices. The group holds licenses and approvals in the UK, EU, and Canada to provide payment and crypto services. Their extensive bank network, proprietary technology, and access to major clearing networks offer reliable payment infrastructure, correspondent account services, and access to key clearing networks. By bridging the gaps left by traditional providers, Clear Junction enables businesses to operate efficiently and expand globally.
For more information, visit: https://clearjunction.com/
For media inquiries, contact Clear Junction's PR agency, SkyParlour, at [email protected] or call +44 (0)330 043 1315
Source: Business Wire
- The discussion titled "Bootstrapping vs. Backers: The Fintech Funding Showdown" at the Money20/20 Europe 2025 conference will delve into the advantages and drawbacks of bootstrapping and venture funding in the fintech industry.
- Dima Kats, CEO and founder of Clear Junction, emphasizes the importance of building something sustainable rather than focusing on raising the most capital, as bootstrapping forces a focus on efficiency, product-market fit, and real value.
- Babs Ogundeyi, founder of Kuda, a Nigerian neobank, highlights the necessity of venture funding to build quickly and meet the urgent needs of millions of customers excluded from the financial system.
- With investor interest gradually returning in 2025, the fintech industry is expected to see more conservative deal sizes and increased expectations, making the debate between bootstrapping and venture funding particularly relevant for founders, funders, and policymakers.
