Fintech Annual Report 2025

The FinTech industry is bolstered by both interest rate cuts and the recent U.S. elections, resulting in record-high performance in public markets. The industry remains attractive due to its innovative potential for international commerce in the face of ongoing geopolitical conflicts and changing global regulatory standards. See the industry outlook in the FinTech & Cybersecurity Winter 2025 Report.

FINTECH ANNUAL REPORT

2025

Index

Macroeconomic Overview

Industry Overview

Market Breakdown

FinTech M&A Activity

Select FE International Transactions

FinTech Funding

Looking Ahead

Behind this Report

About FE International

Macroeconomic Overview

A New Year, a New Hope

Real GDP Growth (% YoY)

Global economic outlook is more hopeful for 2025. Cabinet changes across several of the G20 and accommodative monetary policies signal greater potential for growth across markets and industries. The incoming US Presidential Administration heavily influences the global macroeconomic outlook for 2025. The election of Donald Trump in the US is widely expected to improve the economic and regulatory landscape for business owners. In the international arena, President-elect Trump’s trade policies will likely focus on attempting to solidify U.S. dominance in areas such as digital technology and artificial intelligence, broadly benefitting the tech industry as a role. US President-Elect Trump's generally pro-business stance is encouraging to global markets. The new administration's proposed tax policies could lead to substantial changes in the US economy and its partners. Tax cuts, particularly for corporations and high-income earners, might stimulate investment and economic activity. While global financial markets are especially poised for a potentially transformative period, across- the-board tariffs from the US would be unusual — the impact on the global economy could be considerable. However, the potential imposition of tariffs is more likely the starting point of negotiations. Worldwide GDP is forecast to expand 3.0% next year, slightly below prior estimates. The UK and EU are expected to continue to struggle with growth but could be impacted positively by events in the U.S. In China, growth is expected below the official 5% target for the year. For the U.S., there is no consensus, and forecasts are being reconsidered at this writing. Goldman Sachs and UBS forecast 2025 U.S. GDP growth at 2.7-2.9%. The U.S. economy could initially grow slightly faster under Trump's plans to cut corporate taxes, but that impact could quickly fade depending on the effects of a tariff conflict. The Conference Board’s Consumer Confidence Index rose to 111.7 in November 2024, an increase of 2.1 points from October and the highest level since July 2023. This likely reflects increased consumer optimism following the U.S. presidential election and more positive assessments of the current labor market.

4.8%

4.1%

3.3%

3.0%

2.9%

2.7%

1.5%

1.2%

0.9%

0.8%

24E 25E

24E 25E Euro Zone

24E 25E

China

World

Consumer Confidence Index (%)

Index, 1985 = 100

140

Recent uptick in Consumer Confidence

130

120

111.7

110

100

2020

2021

2022

2023

2024

2025

Source: S&P Global Economic Research and The Conference Board.

The Lower Middle Market: A Hidden Gem for M&A Central banks worldwide have continued a gradual reduction in policy rates, which is expected to greatly benefit M&A activity through 2025. The lower-interest-rate environment benefits sellers by making deals more affordable and attractive. Lower borrowing costs translate to reduced debt, quicker deal timelines, and less complex financing structures. Sellers may be able to negotiate for larger upfront payments and fewer deferred payments or earn-outs, as lower borrowing costs reduce the need for such complex arrangements.

The recent interest rate cuts are encouraging for buyers and sellers alike, especially as capital deployment becomes a priority at year end. The [US] Fed didn’t commit to a timeline for the next cut, possibly a signal of caution with policy shifts from the new US administration. Inflation is still “somewhat elevated," so they are walking a tightrope. Powell’s challenge? Balancing a cooling labor market with inflation control. For business owners, this could mean opportunity in the months ahead.

Thomas Smale CEO of FE International

The underlying technology and platform primarily drive lower middle market deals. Lower middle market deals valued under $100 million often require less financing, making them less sensitive to interest rate fluctuations, but lower rates can lead to even more favorable terms and increased deal activity. Importantly, overall economic optimism and a pro-business environment can lead to increased deal activity, especially in the lower middle market. For instance, the US President- elect has expressed plans to deregulate the financial industry and emphasizes technology solutions for financial transactions, which portends well for increased deal activity.

Interest Rate (%)

Rate cuts by Central banks

Quote from Randal The true driver of success in lower middle market technology deals lies in the underlying technology. In sectors like FinTech, where innovation is paramount, the ability to acquire and deploy transformative technologies will ultimately determine deal outcomes. Additionally, a pro-business environment can, on the margin, prompt more transactions to be considered and pursued.

4.38% 3.40% 4.75%

1.00%

Randal Stephenson Head of Investment Banking of FE International & CEO of FE Capital Markets LLC 1

Jan-22

Sep-22

Jun-23

Mar-24

Dec-24

US (Fed)

Euro Area (ECB)

United Kingdom (BoE)

Switzerland (SNB policy rate)

Source: Interest rates as per central bank data of respective regions. Note: ECB = European Central Bank, BoE = Bank of England, SNB = Swiss National Bank. (1) Securities transactions offered and managed through FE Capital Markets LLC, Member FINRA/SIPC (FINRA CRD# 314943).

Venture Capital & Private Equity Investment Outlook

VC Dry Powder ($B) by Vintage

PE Dry Powder ($B) by Vintage

$800 B

$1,800 B

$1,600 B

$700 B

$1,400 B

2024 2023 2022 2021 2020 2019 2018 2017 2016

$600 B

2024 2023 2022 2021 2020 2019 2018 2017 2016

$1,200 B

$500 B

$1,000 B

$400 B

$800 B

$300 B

$600 B

$200 B

$400 B

$100 B

$200 B

$0 B

2014 2015 2016 2017 2018 2019 2020 2021

2022 2023 2024

2014 2015 2016 2017 2018 2019 2020 2021

2022 2023 2024

• Venture capital fundraising in 2024 exceeded 2023 levels. Private equity fundraising, while anticipated to be lower due to higher interest rates, still surpassed $500 billion. • VC and PE firms hold approximately $650 billion and $1.4 trillion of dry powder, respectively. Favorable market conditions should create a favorable environment for robust M&A activity across sectors.

• M&A activity could surpass 10-year averages as US President-elect Donald Trump's pro-growth policies, lower corporate taxes, and expected deregulation are anticipated to create a deal-making surge in 2025, according to Goldman Sachs CEO David Solomon.

Source: Pitchbook Q3 2024 Global Private Market Fundraising Report and NY Post, 10 December 2024.

FinTech Industry Overview

The State of FinTech The combination of interest rate cuts and the recent U.S. elections has positively influenced market sentiment, resulting in record-high performance in public markets. The FinTech sector continues to demonstrate resilience, with robust M&A activity, particularly within the lower middle market. It remains attractive due to its innovative potential for international commerce in the face of ongoing geopolitical conflicts and changing global regulatory standards. The transformative potential of generative AI brings appealing opportunities to FinTech, with central banks and regulatory bodies actively exploring its possibilities through initiatives like Hong Kong's GenAI sandbox and the Bank of England's AI consortium. Firms are also harnessing AI to enhance operational efficiency and reduce costs, as exemplified by Klarna's implementation of AI to minimize workforce requirements. As AI agents gain traction, they are increasingly capable of managing complex tasks and delivering personalized services. Additionally, FinTech companies are expanding their operations globally to access new markets and drive growth, particularly in the Asia-Pacific, Latin America, and Africa regions. Firms like Alipay and Toss as well as digital banks like Revolut are exploring new regional opportunities, such as India. Strategic acquisitions, particularly within the lower middle market, are a key strategy for these companies to accelerate growth and strengthen their market positions. Still, the recent collapse of Synapse, the banking-as-a-service startup, has intensified discussions around the need for increased regulation within the FinTech industry. All FinTech companies are encouraged to prioritize compliance, regardless of whether they are adapting to the stricter regulatory framework or preparing for it, as strategic acquirers and consumers alike are expected to wary of cybersecurity and data privacy. Despite some challenges, the FinTech sector remains attractive for funding and M&A. The combination of favorable macroeconomic factors, such as recent interest rate cuts and a more business-friendly regulatory environment, is expected to stimulate increased investment activity in the sector.

FinTech Projected to Reach $1.5 Trillion by 2030 In 2024, FinTech companies accounted for $448 billion in revenue — 4% of the total generated by the banking sector. By 2030, this share is projected to surpass $1.5 trillion , or about 13% of the total market. The integration of financial services into non-financial interactions is just beginning. We are witnessing a rise in financial services embedded within B2B platforms and supplier networks, along with a growing adoption of value-added services like cash flow forecasting and spending management tools. Open banking, API’s which centralize consumer financial data from across traditional banking systems, have yet to revolutionize the banking landscape. While open banking offers potential benefits like improved underwriting and customer experience, its impact remains limited by low consumer adoption and a lack of groundbreaking use cases. Leaders in the vertical will need to focus on driving innovation in areas like account portability and leveraging transaction data for personalized services.

Global FinTech Revenues

(In Billions of USD)

1,500

3.3x

200

FinTech Penetration of Banking Revenues

13%

1,300

448

2030F

404

2024

2030F

Banking Insurance

Source: BCG - Global FinTech Report 2024 and World Economic Forum: Fueling Innovation: Closing Fintech Funding Gaps and FE internal analysis.

North America and Asia-Pacific Lead the FinTech Revolution Global FinTech revenue growth by region, 2024 to 2030

North America 2.5x – $520B

Europe 3.0x – $190B

Africa 6.0x – $65B

APAC 4.0x – $600B

LatAm 6.0x – $125B

Growth multiple (X) - 2030 revenues ($B)

FinTech expansion is not uniform across the globe. North America , led by the US with its vast financial resources and room for innovation, is poised to remain the global FinTech leader. The US is projected to capture 32% of global FinTech revenue growth by 2030, driven by B2B solutions and monoline FinTech's expanding their offerings. Europe is expected to experience significant growth, driven by forward-looking regulations and strong growth in payments, embedded finance, and B2B solutions.

With over three-quarters of adults remaining underbanked, emerging markets are primed for future growth. Africa and the Middle East , with high mobile phone penetration but low bank access, are prime candidates for FinTech companies leapfrogging traditional banks. Asia-Pacific , driven by China and India's large unbanked populations, is expected to surpass the US as the world's biggest FinTech market by 2030. Latin America's FinTech markets are also on the rise, led by established players in Brazil and Mexico.

Source: BGC

FinTech Market Breakdown

Sector

Overview

Key Trends

% of 2024 M&A Volume 1 % of 2024 Funding Volume 1

• Revolutionizes payments with faster, easier, more convenient, and secure methods. • Includes: Digital wallets, mobile payments, P2P, real-time payments, and other digital solutions. • Offers modern traditional banking services with digital platforms for managing accounts, mobile banking applications, and integrated financial products. • Analyzes financial data using big data analytics and AI for risk assessment, fraud detection, and money laundering protection. • Helps financial institutions to meet complex regulations, automate reporting, and manage compliance risks. • Democratizes wealth management with automated investment platforms, like robo- advisors, fractional share investing, and digital tools.

• Investors continue to prioritize payment processing and recognize its enduring significance.

Payment Tech

22%

18%

• FinTechs are expanding security with biometrics, tokenization, and AI for both fraud prevention and personalized experiences. • Increased regulatory scrutiny of FinTech partnerships is leading to stricter compliance. • Open banking is improving customer experiences with seamless data sharing across financial institutions. • Leaders are leveraging AI and machine learning to automate compliance processes and improve efficiency. • Organizations are shifting focus from reactive to proactive compliance strategies in anticipation of regulatory challenges. • AI-powered insights are helping identify market trends, optimize portfolios, and uncover hidden risks, all enhancing advisor decision-making capabilities.

Banking Tech

17%

Financial Data & Risk

15%

13%

Wealth Tech

15%

12%

Source: FE Internal Analysis and Pitchbook as of 31 December 2024. 1. Consists of only lower middle market defined as companies valued between $5 million - $150 million.

FinTech Market Breakdown

Sector

Overview

Key Trends

% of 2024 M&A Volume 1 % of 2024 Funding Volume 1

• Leverages cloud-based software solutions specifically designed to address the financial needs of other businesses.

• Focus on AI/ML for scalability, data processing, personalization, and predictive analytics. • Improved user experience through intuitive design, seamless navigation, and personalization. • Interoperability for seamless data exchange and asset transfer across different blockchains. • Modernization of financial systems and economic inclusion by CBDCs. • Decentralized Finance 2.0 (DeFi 2.0) for accessibility, security, and efficiency. • Lower interest rates to drive increased consumer borrowing, benefiting FinTech lenders. • Regulatory scrutiny of digital lending practices due to increasing cyber-attacks. • Leveraging AI for enhanced risk assessment, fraud detection, and personalized pricing. • Analyzing human behavior patterns for accurate risk assessment and personalized products.

Financial Management Solutions

13%

18%

• Uses blockchain technology to generate new financial instruments like cryptocurrencies as well as to facilitate secure and transparent transactions. • Potential applications are cross-border payments, smart contracts, and fractional ownership of assets. • Offers innovative solutions in borrowing and lending money. • Includes digital lending platforms, credit scoring models, loan origination systems, and automated underwriting tools. • Leverages technology to transform the insurance industry by simplifying processes, personalizing policies, and automating claims processing.

Crypto & Blockchain

11%

10%

Credit / Lending Tech

15%

>1%

InsurTech

Source: FE Internal Analysis and Pitchbook as of 31 December 2024. 1. Consists of only lower middle market defined as companies valued between $5 million - $150 million.

FinTech M&A Activity

FinTech M&A Activity Lower Middle Market

FinTech M&A by Year – Lower Middle Market (In Millions of USD)

Total Deal Size in ($M) # of Deals

189

The FinTech deal volume in the lower middle market for 2024 reached $3.7 billion, surpassing the total deal volume of 2023. Deal activity remained robust, with Q3 2024 emerging as the most productive quarter, boasting a 39% surge in deal volume compared to Q3 2023. This great rebound in FinTech M&A activity appears to be gaining even more momentum as we enter 2025. Central banks' interest rate cuts and a slowdown in inflation seem to have bolstered buyer confidence.

126

103

Key trends:

$4,740

$8,219

$5,906

$3,490

$3,748

• Focus on Payment Technology: Payments companies are actively acquiring peers to strengthen their technology stacks and expand their service offerings. ‘Payment Tech’ contributed approximately 20% of total transaction volume in 2024. • Increased Activity in Banking Technology: To keep pace with digital transformation, banks and legacy financial institutions are acquiring FinTech startups to modernize their offerings. Transactions in ‘Banking Tech’ also accounted for approximately 20% of the total transactions volume in 2024. In short, interest rate cuts, improved economic conditions, and strong demand for digital transformation among traditional financial institutions continue to drive FinTech M&A activity through 2025.

2020

2021

2022

2023

2024

45 44 Total Deal Size in ($M) # of Deals FinTech M&A Volume by Quarter – Lower Middle Market (In Millions of USD) 49 50

27 28

24 24 23 25

21 18

17 20

Distribution of Lower Middle Market FinTech M&A Deals Smaller transactions remain the primary driver of M&A activity, accounting for over 60% of total volume in 2024

M&A Deals by Sector

65% of M&A deals were valued under $50M

72% of M&A deals were valued under $50M

InsurTech

10%

Select FE Deals in 2024

13%

Credit / Lending Tech

6% <1%

PaymentTech

Crypto / Blockchain

35%

17%

22%

11%

45%

Payment Tech

23%

2023

2024

Financial Management Solutions

Sold to

13%

2024

Banking Tech

17%

28%

30%

15%

Financial Data & Risk

WealthTech

$0 - $25M $25 - $50M $50 - $100M $100M+

• Strategic acquirers continued to be the primary drivers of M&A activity, with 16 of the top 20 deals. • Despite a shift towards larger deals, smaller transactions below $50 million remained a key driver of M&A activity.

• Payment and Banking tech sectors had approximately 40% of the deal volume in 2024 – Increasing use of AI and Open Banking will continue to transform payment processes, offering new opportunities • Intensifying FinTech regulation will continue to drive deal flow in ‘Financial Data & Risk’ sector as regulators implement stricter rules to ensure consumer protection and operational resilience

Source: Pitchbook as of 31 December 2024. Data consists of transactions where deal value was disclosed.

Select FinTech M&A Deals in 2024 Lower Middle Market

Deal Size ($M)

Target

Buyer

Date

Target

Buyer

Date

15-Aug-24

150

27-Sep-24

7-Jun-24

150

22-Feb-24

12-Feb-24

150

23-Jul-24

23-Dec-24

141

3-Oct-24

24-Oct-24

136

7-May-24

21-Aug-24

125

15-Aug-24

29-Feb-24

115

20-Mar-24

5-Mar-24

108

21-Aug-24

Private Buyer

28-Feb-24

100

15-Nov-24

9-Jan-24

100

25-Oct-24

Source: Pitchbook as of 31 December 2024. Note: NA represents undisclosed data; NM represents not meaningful (multiples >50x).

By Deal Type

By FinTech Sector PaymentTech

Private Equity

Crypto / Blockchain Financial Data & Risk

Credit / Lending Tech

InsurTech Financial Management Solutions

Strategic

Finance / Banking Tech

WealthTech

Active FinTech Buyers Lower Middle Market

Financial Buyers

Strategic Buyers

Source: Pitchbook as of 31 December 2024.

By FinTech Sector PaymentTech

Crypto / Blockchain Financial Data & Risk

Credit / Lending Tech

InsurTech Financial Management Solutions

Finance / Banking Tech

WealthTech

Select FE International FinTech Transactions

Finding the Right Buyer in a Niche Sector Asperato, a Salesforce payment orchestration solution, finds new home with Salesforce focused private equity firm

Company Overview:

Sold to

Asperato is an embedded Salesforce payment orchestration solution with a gross merchandise value (GMV) run rate of over $1.1 billion. The company helps businesses securely collect and process payments around the world with its fully tokenized PCI-DSS Level 1 compliant solutions, which have been audited and certified to meet the highest standards of security. Asperato partnered with FE International due to the firm's unmatched presence in the Salesforce ecosystem, with over a dozen completed transactions such as CloudOrca and Focus on Force.

Salesforce Payment Solution

Key Value Drivers:

Buyer Interest:

Process Results:

• Revenue has grown 33% year over year between 2021-2022 • 87% gross margins • Net revenue retention of 111% (2022)

• Opportunity presented to 1200+ buyers with the majority of outreach focused on strategic acquirers within FinTech and beyond.

• FE negotiated favorable management incentive structures in which founders receive future payouts for consistent results — in addition to funds received for the sale of the business • 7 Offers that each exceeded sellers’ expectations

Leading Cart Platform Exits with PE Firm FE International represented ThriveCart in a broad, yet disciplined sales process, resulting in 10 qualified offers received

Company Overview:

Sold to

ThriveCart is a premier CRO and checkout cart platform positioned at the forefront of the industry's technology. It offers an innovative and user-friendly solution for small and medium businesses eager to enhance their ecommerce capabilities. The ThriveCart team saw the heightened activity in the space following Instacart's acquisition of Caper AI and wanted to capitalize on the increased multiples. FE International drove great interest with over a dozen offers - 10 of which were qualified - and maximized offers by tightening deadlines and creating competitive tension. All contingent payments post-sale were paid out in full.

B2B SaaS CRO & Checkout Cart Platform

Key Value Drivers:

Buyer Interest:

Process Results:

• Strong market presence with $860M+ in annual processed sales, with lifetime values reaching $2.1B+ • Stellar financial performance marked by a CAGR of 48% from 2016 to 2021 • Revenue share agreement with a globally renowned payment processor • Optimal operational efficiency reflected in high EBITDA margins of over 60%

• 241 Parties contacted • Notable parties included: Greater Sum Ventures, Harmony Venture Labs, Kajabi, Republix, Stax Payments, and Stripe

• ThriveCart received 10 qualified offers • FE International exceeded seller’s expectations with all contingent payments post-sale paid out in full

FinTech Funding

FinTech Funding Activity Lower Middle Market The FinTech industry is poised for a resurgence. While funding in 2024 reached $3.7 billion across 257 deals, reflecting the impact of the banking tech sector fallout 1 and the challenging global environment, this period of cautious investment is likely to foster a more sustainable and robust ecosystem for future growth. Key trends: • Investor Selectivity: Investors in 2024 were highly selective, favoring companies with strong differentiation and revenue potential. • GenAI Advantage: Companies leveraging GenAI are attracting significant interest, especially those addressing industry-wide problems like financial crime prevention and cybersecurity. • Normalized Valuations: Valuations have normalized from the 2021 peak, and early- stage companies will need to focus on strong founding teams and innovative technologies to secure funding . As global economic conditions stabilize following recent rate cuts and the US elections, the FinTech industry is poised to experience a renewed wave of investment. To navigate this evolving landscape, FinTech companies will increasingly leverage AI to optimize operations, reduce costs, and enhance profitability. By demonstrating strong financial performance and innovative use of technology, FinTechs can position themselves for future funding rounds and long-term success.

FinTech Funding by Year – Lower Middle Market (In millions of USD)

Total Deal Size in ($M) # of Deals

804

693

449

365

257

$6,292

$12,002

$9,810

$4,991

$3,746

2020

2021

2022

2023

2024

FinTech Funding Volume by Quarter – Lower Middle Market

217

(In millions of USD)

Total Deal Size in ($M) # of Deals

203 214 202

201

172

165

123

116 109 99

106 108

87 82 83 79 80

Source: Pitchbook as of 31 December 2024. Data consists of transactions where deal value was disclosed. Note: Companies valued between $5 - $150 million were considered lower middle market. 1. Synapse, a BaaS provider, collapsed in 2024, resulting in significant customer losses and prompting increased regulatory scrutiny on the fintech industry. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 2022 2023 2024

Distribution of Funding Rounds by Volume Smaller deals drive FinTech funding as larger companies require significant funding for expansion

funding Deals by Sector

c.90% of funding deals were under $25M

89% of funding deals were under $25M

Banking Tech

9% 2%

Payment Tech

InsurTech

18%

36%

Crypto/Block chain

10%

2023

2024

50%

Financial Management Solutions

2024

39%

18%

12%

WealthTech

53%

13%

15%

Credit / Lending Tech

Financial Data & Risk

$5 - $10M $10 - $25M $25 - $50M $50M+

• The FinTech sector consistently attracts funding for smaller deals, with 90% of 2024 fundings falling below the $25 million mark. While early-stage VC funding remains active, the significant number of later-stage VC deals indicates a strong appetite for mature FinTech companies as well. • The average FinTech deal size has increased to $14.7 million from $13.6 million in 2023. • Payment tech companies raised the most capital, followed by companies operating in ‘Financial Management Solutions’, ‘Credit Len ding Tech’ and ‘Financial Data & Risk’ sectors.

Source: Pitchbook as of 31 December 2024. Data consists of transactions where deal value was disclosed.

Select FinTech Funding Deals in 2024 Lower Middle Market

Deal Size ($M)

Company

Date

Funding Type

Company

Date

Funding Type

15-Mar-24

75.0

Seed Round

13-Jun-24

32.5

Later Stage VC

24-Jan-24

75.0

Later Stage VC

19-Sep-24

30.8

Early-Stage VC

22-Jul-24

62.0

Seed Round

15-Jul-24

30.0

Later Stage VC

15-Apr-24

50.0

Later Stage VC

7-Jun-24

29.8

Later Stage VC

9-Sep-24

45.5

Later Stage VC

28-Nov-24

28.0

Early-Stage VC

19-Jan-24

27.9

PE Growth/Expansion

20-Jul-24

42.0

Later Stage VC

22-Jul-24

38.0

Early-Stage VC

22-Apr-24

26.9

Early-Stage VC

16-Apr-24

37.8

Early-Stage VC

5-Aug-24

26.5

Early-Stage VC

7-May-24

36.0

Later Stage VC

23-May-24

26.3

Early-Stage VC

29-May-24

36.0

Later Stage VC

27-Feb-24

25.2

Later Stage VC

3-Apr-24

35.0

Later Stage VC

10-Dec-24

25.0

Later Stage VC

9-Feb-24

32.9

Early-Stage VC

30-Oct-24

25.0

Early-Stage VC

Source: Pitchbook as of 31 December 2024. Note: Data includes funding rounds exceeding $5 million for companies with a valuation under $150 million.

By FinTech Sector

PaymentTech

Crypto / Blockchain

Credit / Lending Tech

InsurTech

Banking Tech

Financial Management Solutions

Financial Data & Risk

WealthTech

Active FinTech Investors Lower Middle Market

# of FinTech Investments in 2024

Investor

Select Investments

Source: Pitchbook as of December 2024. Note: Data includes funding rounds exceeding $5 million for companies with a valuation under $150 million.

Looking Ahead

Looking Ahead The FinTech industry is undergoing a period of significant transformation. While focus was once on rapid growth and innovation, there's now a growing emphasis on risk, profitability, and long-term sustainability. FinTechs should prioritize the following in the near term: Regulation & Risk Management • Both FinTechs and traditional banks must prioritize regulatory compliance, especially in areas like anti-money laundering and KYC regulations. • Robust, proactive risk management frameworks are essential to ensure ongoing operational resilience. Improve Profitability • Cost reduction strategies, such as streamlining operations, optimizing technology infrastructure, and negotiating favorable deals with vendors can help increase the overall value of new solutions. Focus on Sustainable Growth • While M&A activity is likely to increase, FinTechs need to focus on building a strong foundation and demonstrating sustainable growth. AI-native companies, especially in FinTech, are gaining an edge due to advanced capabilities in areas like compliance, insurance, and capital markets, and because they often achieve more with less capital compared to their legacy counterparts. By focusing on these key areas, FinTechs can navigate the evolving landscape, build sustainable businesses, and deliver value to their customers and investors. With decades of experience, FE International helps businesses prepare for a successful exit by conducting a thorough valuation, suggesting optimizations for operations and profitability, identifying areas for potential growth, and crafting a compelling story for investors.

Behind this Report Ashley Bohn Senior Associate linkedin" Icon - Download for free – Iconduck

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Ismael Wrixen Executive Chairman

Ashley Bohn is a Senior Associate on the Investment Bankingteam at FE International. Bohn provides advisory services across FinTech, digital media, and similar areas. She previously worked in public accounting where she serviced companies with gross revenues ranging from six to ten figures within the technology industry. She is a Certified Public Accountant in New York State.

Ismael Wrixen is the Executive Chairman of FE International and the CEO of ThriveCart. He is a member of the Forbes Finance Council and a NACVA 40 Under 40 Award winner. Before FE, Wrixen was in large-cap M&A investment banking, where he executed several high-profile public deals, namely in the technology sector.

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Thomas Smale Chief Executive Officer

Rohit Kumbhar Senior Associate

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Thomas Smale dedicates his career to helping founders get acquired on their terms. He built FE into the leading advisor for lower middle market technology businesses. FE's team has completed over 1,500 transactions with a combined value of over $50 billion. Thomas offers invaluable technical, diligence, and negotiation advice to early-stage and seasoned business owners alike.

Rohit Kumbhar is a Senior Associate on the Investment Bankingteam at FE International. He has extensive experience in investment banking across multiple sectors and has overseen more the $1 billion in deal value. Previously, he worked as an Associate at Bank of America serving FTSE 100/250 clients for corporate broking advisory, investor engagement and M&A.

Randal Stephenson Head of Investment Banking

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Randal Stephenson has over 25 years of experience in both M&A advisory and debt and equity capital raising. He has closed over 300 transactions valued at $44 billion across 22 countries. Before FE, he held senior investment banking positions at Merrill Lynch, Jefferies, CIT Group, and Duff & Phelps.

About FE International

Founded in 2010, FE International is an award-winning strategic advisor for technology businesses. With a proven track record of success in this space, FE International offers a comprehensive suite of services which include:

• Investment Banking: Investment banking built for the lower middle market including M&A, private capital placement, and valuation services provided by FE Capital Markets. • Private Sales & Acquisitions: Buy or sell privately held technology businesses with our seasoned team.

• Due Diligence Services: Gain a clear, strategic view of a company’s financials and operations with our comprehensive due diligence services. • Early-Stage Funding: Streamline your capital raise in partnership with Funden, a managed fundraising service for busy founders.

1,500+ Transactions completed on behalf of clients 1

$48M Average Transaction Value

70% + Percentage of Sell-Side Transactions

Percentage Completed Transactions 2 94.1%

Sector Expertise

FinTech

SaaS

Ecommerce

Artificial Intelligence

Agency & Marketing Solutions

Marketplace Apps

Education Technology and Online Training

Cybersecurity

Source: Company data. 1. Includes approximately 300 transactions completed by FE professionals while at other firms. 2. Sell-Side transactions, measured from the date of launch of buyer outreach and marketing.

London, UK

Warsaw, Poland

New York, USA

San Francisco, USA

Miami, USA

Mumbai, India

Awards:

Featured in:

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