After the drop in funding in 2023, fintechs forced to adapt

The drop observed in financing must be analyzed by taking into account the measures taken by entrepreneurs which led to a reduced need for equity capital. These actions made it possible to extend the duration of coverage of cash flow needs.

Fintechs have also made greater use of debt, the offering of which for start-ups is now broader. Overall, despite this sharp contraction in levees, the ecosystem has, overall, held up well.

Given the very difficult environment, it has in fact recorded few failures and business stoppages. It is true that mergers and acquisitions have offered players in tension a backing option and leaders an opportunity for consolidation at a reasonable price.

But above all, the fundamentals remain good: the digitalization of financial services continues and the demand for innovative offers is strong. Turnovers continue to grow and monetization is accelerating. This explains why recruitment seems to be on the rise again in the last quarter.