Crypto Becomes the Go-To for 1 in 3 European FinTechs amid 70% Funding Plunge

<p>The
European fintech sector is grappling with adverse changes, with a decline of 70% in funding for H1 2023 compared to the same period last year.
Amid these challenges, the industry is shifting its focus towards profitability
and long-term sustainability. The cryptocurrency industry is taking the lead,
currently attracting the most capital.</p><p>The Funding Drought in FinTech</p><p>The newest report
by <a href="https://cms.finchcapital.com/uploads/State_of_European_Fin_Tech_2023_v_F_a159116d31.pdf?updated_at=2023-09-11T18:05:13.320Z">Finch
Capital</a> highlights that the total capital raised in the European <a href="https://www.financemagnates.com/terms/f/fintech/">fintech</a>
sector for H1 2023 was €4.6 billion, which is a stark decline from €15.3
billion in H1 2022. This fall is attributed to a return of
investment discipline, which has led to the end of mega funding rounds.</p><p>The funding
environment has had a disproportionate impact on different stages of companies.
Seed rounds continue to attract investment, but companies in the Series A to C
stages have been the most affected. The Payments sector, traditionally
resilient, has seen a decline, while Crypto has emerged as the main beneficiary
of early-stage investments. Currently, one in three <a href="https://www.financemagnates.com/tag/fintech/" target="_blank" rel="follow">fintech </a>companies has been labeled
as 'crypto' or 'blockchain'.</p><blockquote><p lang="en" dir="ltr">