Europe’s fintech funding slump casts shadow on Amsterdam event

Europe’s fintech industry faces uncertainty after funding challenges over the past two years brought lofty pandemic-era ambitions down to earth, Reuters reported on Wednesday.

At the Money20/20 conference in Amsterdam, delegates had mixed feelings. While speakers were optimistic, particularly about AI, funding remains tough. Damien Dugauquier of Singapore-based fintech iPiD said raising funds in Europe is “considerably harder” compared to the US or Asia due to weaker economic growth.

AI was a major focus at the conference, with talks from leading firms like Mistral AI. Despite the buzz, fintech companies have struggled since 2022 to raise the necessary funds after central banks raised rates.

Venture capital funding for European fintechs fell sharply from $26 billion in 2022 to $9.2 billion in 2023, according to PitchBook data. By May 2023, deal volumes had reached just $4.4 billion.

Helene Falchier of Portage Ventures noted that founders are now more realistic about valuations, though the market remains sensitive to external events.

She remarked, “I don’t know if we are at the end of the downside of the cycle, to be honest, because interest rates are still high.”