It was a packed room at Goodwin Proctor’s latest fintech event, “A New Dawn – Hot Topics in FinTech M&A in 2025,” where industry leaders gathered to discuss the evolving M&A landscape. With experts from Zelig, Pollen Street, Motive Partners, and Apis Partners on stage, the discussion ranged from macroeconomic trends to the latest insights shaping fintech scale-ups.
Following a slow 2024, the atmosphere was one of cautious optimism, as panelists signaled a stronger deal environment in 2025. Here are the key takeaways from the event.
FinTech Scale-Ups Poised for a Resurgence
Arvin Abraham (Goodwin Proctor) kicked off the discussion with the big question: What’s next for fintech M&A? The consensus among panelists was clear-deal activity is set to accelerate in 2025.
Hugo Bongers (Motive Partners) shared an encouraging outlook, noting that many founders,especially those who previously worked at fintech giants like Adyen are re-entering the fundraising space. He cited a recent example: a fintech startup that initially raised $5 million at a $25 million valuation was able to secure another round at $30 million as market confidence improved.
Adam Battersby (Apis Partners) agreed, stating that many top-tier fintech scale-ups had been in a holding pattern throughout 2024. With valuations stabilizing, 2025 is shaping up to be the year for strategic moves and renewed M&A activity.
The Post-Pandemic Funding Hangover
A major topic of discussion was the aftermath of the 2021-2022 fintech funding boom. Arvin asked: How has the pandemic-era investment frenzy impacted fintech M&A today?
Adam Battersby pointed out that fintech scale-ups are returning to the market, but the investor landscape has changed. Fewer investors are willing to fund at sky-high valuations, meaning fintechs need to demonstrate sustainable growth and profitability.
Anastasia Kovaleva (Pollen Street) added that liquidity challenges are forcing private equity (PE) firms to rethink their investment strategies. Many later-stage fintechs are now acquiring high-potential startups to strengthen their positions. Additionally, PE firms with backlog deals may start rolling up their portfolio companies.
What’s Hot (and Not) in FinTech Valuations?
The fintech valuation landscape is still adjusting. Some fintechs, particularly AI-driven startups, are commanding sky-high valuations that may not be sustainable.
Adam Battersby noted that while AI in fintech is a hot topic, not all AI-powered companies have solid business fundamentals. “It’s a gold rush, but we’re focused on long-term sustainability,” he said.
Hugo Bongers cautioned investors against balance-sheet-heavy businesses, as past investments in these sectors have led to mixed results. Meanwhile, Anastasia highlighted sectors like B2B software, insurtech, and wealth management as key areas attracting investor interest.
Adam also emphasized the growing democratization of finance, pointing to companies like Moneybox, which are reshaping the embedded finance space.
How Do Founders Prepare for an Exit?
Gerd Weissenboeck (Zelig) shifted the discussion to exit strategies: Why are fintech founders selling, and what are buyers looking for?
Anastasia Kovaleva explained that a successful exit isn’t just about the highest valuation-it’s about finding the right strategic partner.
From a venture capital (VC) perspective, Hugo Bongers noted that exits take time. “We think in 5-10 year horizons. Founders who start planning early will have the most successful exits,” he said.
Adam Battersby expressed surprise that many fintech founders don’t consider their exit strategy early on. His advice: If you’re building a fintech scale-up, you should be thinking about your acquirers from day one.
Generating Buzz and Buyer Interest
How do fintech scale-ups attract the attention of potential buyers?
Anastasia Kovaleva provided a key insight: Industry engagement is crucial. Hosting fireside chats, panels, and industry talks can position a fintech startup as an attractive target. “Saying ‘we aren’t for sale, but here’s what we do’ can draw the right kind of interest,” she explained.
Adam Battersby added that founders should ask themselves: Who actually needs to buy this asset? Understanding your potential acquirers and shaping your business accordingly is critical.
The Role of Tech in Deal-Making
Technology is also reshaping the fintech M&A space. Hugo Bongers shared that Motive Partners evaluated over 700 fintech scale-ups in 2024 but only invested in 8. The lesson? Competition is fierce.
To streamline deal flow, fintech investors are turning to AI-driven tools like:
- Affinity AI for CRM and deal tracking
- Perplexity AI for quick due diligence and summarizing pitch decks
While AI helps process large amounts of financial data, it’s not yet advanced enough to underwrite deals entirely.
Where Are the Deals Happening?
The panelists highlighted key fintech sectors poised for deal activity in 2025:
🔹 Hugo Bongers: Wealth management, compliance, and AI-driven fintech solutions.
🔹 Anastasia Kovaleva: Regtech, compliance tech, and workflow automation.
🔹 Gerd Weissenboeck: B2C and payments have slowed, but enterprise software and capital markets fintech are gaining traction.
🔹 Arvin Abraham: Neobanks from the 2021-2022 boom are now entering late-stage fundraising or IPOs.
Final Thoughts
The energy in the room was unmistakable-2025 is shaping up to be a pivotal year for fintech M&A. With investors looking for scalable, high-growth businesses and founders preparing for strategic exits, fintech deal-making is poised for a strong comeback.
For fintech leaders, the key takeaway was clear: start thinking about your exit before you need one. In this competitive market, the best-prepared companies will secure the most lucrative deals. You can also checkout this recap of the event for more information!
How BeachLevel Associates Can Help
At BeachLevel Associates, we help fintech companies navigate the complex M&A landscape with strategic insights, deal structuring expertise, and market positioning. Whether you’re a scale-up looking for funding, a fintech leader planning an exit, or an investor seeking high-growth opportunities, our team provides the guidance you need to make informed decisions and maximize value.
📩 Contact BeachLevel Associates to discuss how we can support your fintech growth strategy.
