FinTech Series A, B & C: What VCs Should Be Paying Attention to in 2025

Q1 2025 delivered a clear signal: FinTech private capital markets are reawakening—but only for companies that meet the moment.

Private FinTech financings reached $13.9B across 949 deals, a 34% YoY increase. But the market isn’t rising across the board. Capital is flowing disproportionately into a narrower band of companies, concentrated in infrastructure, compliance, and efficiency-first models.

As Series A, B, and increasingly C deals get priced, the distinction between noise and opportunity is clearer than ever. Here’s what every investor should be watching.

🔎 Series A: Where Technical Risk Meets GTM Validation

The bar for Series A has shifted. It’s no longer about vision—it’s about early GTM execution and a defined ICP.

VCs are writing $10–15M checks to companies that:

• Solve real B2B pain points (cash management, treasury, compliance, lending rails)

• Show strong sales velocity from founder-led GTM or early channel partnerships

• Can prove early retention and monetization—even if top-line revenue is still subscale

Top verticals:

• Financial ops automation (Spend controls, Embedded FP&A)

• RegTech SaaS

• SME underwriting infrastructure in emerging markets (esp. MENA)

⚙️ Series B: Proving Scalability—Not Just Growth

The Series B bar has risen sharply. Median round sizes range $24–30M, but the scrutiny around scalability, margin structure, and CAC discipline has intensified.

Investors want:

• Repeatable GTM

• Efficient customer acquisition at scale

• Real product stickiness (DAU/MAU ≠ retention)

• Defined path to cash-flow positivity or strategic acquisition readiness

Notable themes:

• Embedded credit platforms with enterprise anchors

• Treasury-as-a-Service targeting CFOs of multi-entity firms

• Cross-border B2B payments with a regulatory edge

🏦 Series C: Liquidity Path or Bust

At the Series C level, capital is flowing—but only to companies with defined exit paths, profitability levers, or strategic alignment.

Investors are looking for:

• Clear buy-side interest (e.g., infra-layer FinTechs attractive to banks or cloud providers)

• Embedded finance plays with deep integrations in vertical SaaS

• Compliance tech scaling cross-region with Tier 1 clients

There is no room for companies still chasing “growth at all costs.” Most Series C rounds getting done are inside rounds, down rounds, or structured with ratchets, unless the company is outperforming the 2021 cohort.

📉 What’s Out of Favor

Across A–C stages, these verticals are consistently getting passed over:

• Consumer Neobanks: High CAC, low LTV, saturated UX

• Retail Crypto: No infrastructure, no interest

• D2C InsurTech: Unscalable acquisition + underwriting risk

• PFM / Budgeting Apps: Downloads ≠ durable revenue

• Overbuilt BNPL: Especially in the US/EU, where margin compression and regulatory threats loom

🌍 Regional Nuance

🇺🇸 U.S.:

• Valuation discipline is back. Burn multiples matter.

• Top funds are leading or passing—rarely coasting in the middle.

🇪🇺 Europe:

• Strong pipeline of RegTech, treasury, and SME infra players.

• Series A still the most active; Series B thins out quickly without commercial traction.

🌍 MENA:

• Larger Series A rounds (~$10–12M) with sovereign and bank-backed capital.

• Infrastructure plays—especially those aligned with Vision 2030 or cross-border rails—are outperforming.

Bottom Line for VCs

The FinTech rebound is real, but not broad. Your Series A–C portfolio should be anchored in:

• Infrastructure (infra > interface)

• Compliance and B2B financial systems

• AI where it augments risk, ops, or sales velocity—not just UI

The winners are solving pain at the core of financial institutions and enterprise back offices—not in the consumer front end.

CTA:
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Want to benchmark your pipeline or evaluate a strategic angle?

—
Tom

Tom C. Schapira
Founder and CEO
Imagine Capital Group
E: [email protected]
Website: http://www.imaginecapitalgroup.com

Securities Offered through Wellesley Hills Securities. Member FINRA/SIPC