SAN FRANCISCO, October 21, 2025 – Despite promising use cases for AI, fintech founders are operating in one of the least saturated spaces for AI adoption, according to the 2025 Fintech report from Silicon Valley Bank (SVB), a division of First Citizens Bank. While AI has accounted for more than half (58%) of VC investments in 2025, AI-enabled fintech startups have accounted for 30% of total VC investment, according to the report.

Data indicates that while AI can offer long-term transformation, the more immediate impact of technology disruption is with blockchain, largely driven by increasing acceptance of stablecoins as a potential replacement for conventional payment rails. According to the report, funds with a cryptocurrency focus represent two-thirds of all fintech funds while total cryptocurrency market cap has surpassed $4 trillion.

“The fintech sector is showing signs of relative stability and potential. Investments are up, cash burn is down, profitability is improving, and revenue growth has stabilized,” said Nick Christian, co-author of the report and Head of National Fintech and Specialty Finance at Silicon Valley Bank. “The sum of these parts suggest that fintech has quietly matured into a promising and stable sector of the innovation economy.”

SVB’s 5th edition of the Future of Fintech report provides a detailed analysis of the fintech market, including investment and fundraising trends. It also looks at the growing importance of emerging technology in horizontal applications, including customer service and productivity, as well as vertical applications specific to finance.

Numbers to Know:

  • $4M is the median revenue benchmark for raising Series A capital among fintech companies. Revenue thresholds for raising capital are rising across the board, particularly at Series A, where the median is up 4x from 2021. 
  • -12% is the median year-over-year change in cash burn as of Q2 2025. Three years after hitting a 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. 

Additional Findings:

  • Valuations are growing across all business stages, especially at the seed stage where valuations have more than doubled since 2019. Companies raising Series A funding in 2025 had $4 million in annual revenue compared to just $1 million in 2020 and 2021.
  • Since the end of 2022, the percentage of fintech companies with positive net margins has grown from 8% to 22%.
  • Fintech mergers and acquisitions (M&A) are on pace for a record year of more than 200 announced deals. For disclosed transactions, the median sale price is roughly 4x the total capital raised, down sharply from nearly 9x in 2022.
  • Venture capital investment in U.S. fintech unicorns is on track to hit $7 billion in 2025, down from $36 billion in 2021.
  • Since 2024, IPOs have averaged 10x revenue multiples, down from the 30x achieved by the five fintech companies that went public in 2021.

SVB’s Christian, along with other leaders from SVB’s National Fintech team, will be sharing data and analysis from the report at the upcoming Money 20/20 Conference from October 26-29 in Las Vegas. SVB’s Anthony Vassallo, SVB’s Head of Relationship Management for Crypto, will be moderating a panel at Money 20/20 called, “Can Efficiency in Payments Still Make Money?”

Learn More

As a leader in serving the fintech industry, Silicon Valley Bank provides select banking services to crypto companies and VCs investing in the space. For more information, visit: Crypto Banking & Finance Solutions for Blockchain Companies

Read the full 2025 Future of Fintech report here: The Future of Fintech Report 2025

About Silicon Valley Bank

Silicon Valley Bank (SVB), a division of First Citizens Bank, is the bank of some of the world's most innovative companies and investors. SVB provides commercial and private banking to individuals and companies in the technology, life science and healthcare, private equity, venture capital and premium wine industries. SVB operates in centers of innovation throughout the United States, serving the unique needs of its dynamic clients with deep sector expertise, insights and connections. SVB's parent company, First Citizens BancShares, Inc. (NASDAQ: FCNCA), is a top 20 U.S. financial institution with more than $200 billion in assets. First Citizens Bank, Member FDIC. Learn more at svb.com.