Key Takeaways
Amid regulatory, economic and technological disruption, the fintech sector is showing signs of relative stability and promise. It’s also among the least-saturated spaces when it comes to AI.
$4M Median revenue benchmark for raising Series A capital
Revenue thresholds for raising capital are rising across the board, particularly at Series A, where the median is up 4x from 2021.
-12% Median year-over-year change in cash burn in Q2 2025
Three years after hitting their funding peak, fintech companies are still cutting burn rates.
49% Of fintech M&A buyers are VC-backed companies
The number of M&A deals that involve VC-backed companies buying out other VC-backed fintechs is rising.
Revenue thresholds are rising
Fintech companies raising Series A funding in the past 24 months had $4M in median annual revenue, up from just $1M four years ago.
Today’s median revenue levels would have put fintechs in the top quartile of Series A companies from 2020 to 2021.
Source: SVB proprietary data, SVB proprietary taxonomy, PitchBook Data, Inc. and SVB analysis.
Source: SVB proprietary data, SVB proprietary taxonomy, PitchBook Data, Inc. and SVB analysis.
Fintechs are still cutting burn rates
Median net cash burn is down 12% year-over-year for US VC-backed fintech companies—marking the eighth quarter in a row of cuts.
With revenue growth slowing and late-stage investment less plentiful, companies are pushing toward profitability.
Fintech buyers are increasingly acquiring other startups
In 2025, nearly half of VC-backed fintech acquisitions were made by other VC-backed companies, up from roughly a quarter in 2021.
As late-stage companies continue to struggle with value overhang from the era of zero interest rates, private consolidation is becoming a more viable strategy for achieving a public exit.
Source: PitchBook Data, Inc. and SVB analysis.
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