Raising VC for fintechs in 2025

Tiffine Wang is a global venture capitalist focused on AI and tech, along with board advisory.

This year, I’ve been in conversations across the U.S., Asia, and Europe with venture funds, corporates, LPs and founders. Across regions, one theme stands out: the bar is higher and investors are more selective. After years of volatility, 2025 marks a more focused and disciplined funding environment, not just in fintech, but across sectors. There has been significant excitement around AI, driving valuations sharply upward. AI has made it easier to start companies, build products, and run marketing with leaner teams, which has accelerated early traction in some sectors. This ease of entry has raised investor expectations, even when underlying fundamentals are still forming. As a result, capital is flowing more selectively, with greater emphasis on execution, defensibility, and long-term value. 

To raise successfully, companies must demonstrate lasting advantages, strong execution. Series A and beyond now require sharper narratives around monetization, unit economics, growth and efficiency. Fundamentals are in. Investors are deploying capital into fewer fintechs but writing larger checks. 

One of the best ways to understand the challenges facing fintech in 2025 is to study the companies that didn’t make it. Over the past few years, many fintechs have imploded not from lack of demand, but because they were built for growth, not resilience. Some companies overhired, ignored compliance complexity, and failed to adapt to tighter capital and regulatory environments. The fintechs that have endured and are now earning stronger investor and market confidence share key traits: financial discipline, operational rigor, and a strategic approach to regulation, licensing and compliance not as checkboxes, but as competitive moats.

Key traits shared by companies successfully raising capital in today’s environment include:

AI is the new standard: AI is no longer a differentiator; it’s expected. Fintechs must demonstrate real gains from AI-native design, not just superficial integrations. Investors are looking for systems that improve with every interaction, reduce cost to serve and enhance risk and operational intelligence.

Distribution and meaningful partnerships as a moat: Great technology without great distribution is not compelling. Founders need to bring a real distribution strategy to the table. Companies with embedded partnerships, channel leverage and scalable go-to-market engines are more likely to get funded.

Global and local mastery: Global ambition matters, but success in fintech still depends on deep local understanding, this includes licensing requirements, consumer behavior, payment infrastructure and regulatory expectations. This is the baseline. What stands out to investors is a solution that not only navigates local complexity but also shows clear potential to scale globally.

Financial UX that feels human: As complexity increases, simplicity becomes a powerful moat. Fintechs that deliver deeply intuitive user experiences give customers clarity, transparency and a sense of control. Investors are drawn to teams that make financial decisions feel less stressful and more empowering, particularly in underserved or overly complex categories, both consumer and B2B.

Regulatory compliance: Regulation and compliance are often seen as burdensome and costly, especially in the early stages when resources are tight and growth is the focus. Many fintechs try to delay these efforts, hoping to figure it out later, but that is a mistake. Taking regulation seriously early on by understanding licensing requirements, building compliant infrastructure, and proactively engaging with regulators is not just about mitigating risk. It demonstrates a long-term mindset and positions the company for sustainable growth. It creates structural advantages that are hard to replicate quickly, especially across jurisdictions. Fintechs that build with compliance in mind are not only more resilient but also more attractive to enterprise partners, institutional investors and international markets.

A new standard for what endures

When fintechs combine thoughtful design, regulatory rigor, and operational discipline, they set a new standard. Trust is no longer earned through branding or growth alone, but through consistency, resilience, and clarity in navigating complexity. AI has made it easier to build and scale, but it also raises the bar for responsibility. The companies that integrate AI with transparency and control will lead the next wave.

After years of hype, inflated valuations, and unsustainable growth, the industry is shifting. Founders today are being called to build real businesses with sound economics, clear differentiation, and the discipline to endure. This is a recalibration that is forcing founders to think deeper, build stronger and design companies that can actually endure.