Fintech funding is falling – should founders still chase VC?
Global fintech investment slumped to its lowest level since 2017, falling to $95.6bn across 4,639 deals, according to KPMG’s latest Pulse of Fintech report. In the UK, investment dropped by more than 25% year-on-year – its weakest level since the height of the pandemic.
But not all fintech sectors are suffering equally. Payments stood out as a rare bright spot, with global investment rising to $31bn – up from $17.2bn the previous year. Analysts point to infrastructure innovation, market consolidation, and improved investor confidence as key drivers.
As fintech’s investment landscape shifts from growth-at-all-costs to sustainability, the funding paths chosen by founders are under renewed scrutiny. That question takes centre stage at Money20/20 Europe 2025, where two prominent fintech leaders will go head-to-head in a debate titled: Bootstrapping vs. Backers: The Fintech Funding Showdown.
Dima Kats, CEO and founder of leading global payments service provider Clear Junction, and Babs Ogundeyi, founder and group CEO of Nigerian neobank Kuda, will share radically different perspectives on how to build and scale a fintech under pressure.
Kats built Clear Junction without external capital, scaling it into one of Europe’s fastest-growing companies (FT1000, 2025). Ogundeyi, meanwhile, turned to venture funding to rapidly launch and expand Kuda – one of Africa’s first challenger banks, now serving millions of customers.
“It’s no longer about who raises the most,” says Kats. “It’s about who builds something that lasts. Bootstrapping forced us to focus on efficiency, product-market fit, and real value – not hype.”
“We had no time to lose,” says Ogundeyi. “Millions were excluded from the financial system. Venture funding helped us build quickly with other knowledgeable and experienced people to meet urgent needs.”
With investor appetite beginning to cautiously return in 2025 – albeit with more conservative deal sizes and heightened expectations – the discussion is expected to resonate with founders, funders, and policymakers alike.
Moderated by Simone Ishikawa, founder of fintech and impact startup consultancy ishikoo, the session will examine:
- Would either business have survived on the other’s funding path?
- The trade-offs between control, speed, and mission
- Whether founders can stay true to their purpose under investor scrutiny
- How funding models shape strategy in emerging vs. developed markets
- What both leaders wish they had known at the start of their journeys
“We’re not here to pitch a playbook,” says Kats. “We’re here to show what it really takes.”
“Trust and inclusion are at the heart of both our missions,” adds Ogundeyi. “But we chose different paths.”
Session details: Bootstrapping vs. Backers: The Fintech Funding Showdown, 11:30am–12:00pm, Thursday 5 June, Off The Record Stage, Money20/20 Europe: Full agenda here