Fintech Investment Remains Stable Offering Opportunities for Growth Outside of AI; Silicon Valley Bank Releases Annual Fintech Report

Rhea-AI Summary

Silicon Valley Bank (FCNCA) released its 2025 Future of Fintech report on Oct 21, 2025, finding fintech investment and fundamentals stabilizing amid shifting tech trends.

Key data: AI-enabled fintech attracted 30% of fintech VC in 2025 while AI accounted for 58% of overall VC; crypto-focused funds make up two-thirds of fintech funds and total crypto market cap topped $4 trillion. Median Series A revenue is $4M. Median cash burn fell 12% YoY. Fintech M&A are pacing for >200 deals; median disclosed sale price ~4x capital raised (down from ~9x in 2022).

Positive

• Median Series A revenue benchmark at $4M
• Median cash burn down 12% YoY as of Q2 2025
• Share of fintechs with positive net margins rose from 8% to 22%
• Fintech M&A pacing for >200 deals in 2025

Negative

• Median disclosed sale price ~4x capital raised, down from 9x in 2022
• Venture funding in U.S. fintech unicorns on track for $7B in 2025, down from $36B in 2021
• IPO revenue multiples averaged 10x since 2024, down from 30x in 2021

Insights

Fintech Strategist

SVB report signals a maturing fintech sector with stable funding, improving margins, and rising crypto/stablecoin influence.

The report shows clear metrics of stabilization: median revenue to reach Series A rose to $4M, cash burn fell 12% year-over-year, and the share of fintechs with positive net margins increased from 8% to 22%. These figures indicate companies are generating more revenue before raising capital and cutting operating losses, which supports a more sustainable funding environment.

Dependence on crypto-related capital deserves cautious attention: funds with a cryptocurrency focus represent two-thirds of fintech funds and total crypto market cap topped $4 trillion. That concentration links fintech funding health to crypto market sentiment and stablecoin acceptance, which can shift quickly and affect deal flow and valuations.

Watch near-term signals over the next 6–12 months: the pace of fintech M&A (on track for >200 deals), disclosed median sale price at roughly 4x total capital raised, and VC investment into U.S. fintech unicorns projected at $7 billion in 2025. Those metrics will show whether valuation compression and capital reallocation persist or reverse.

Increasing adoption of stablecoin generates positive outlook for the fintech sector

SAN FRANCISCO, Oct. 21, 2025 /PRNewswire/ -- 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 5^th 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.

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SOURCE Silicon Valley Bank

FAQ

What did SVB's Oct 21, 2025 fintech report say about AI investment in fintech (FCNCA)?

The report said AI accounted for 58% of total VC investment in 2025 while AI-enabled fintech captured 30% of fintech VC.

How much revenue do fintech companies need to raise a Series A in 2025 (FCNCA report)?

The median revenue benchmark to raise a Series A in 2025 is $4 million.

What did the Oct 21, 2025 report report about fintech cash burn and profitability?

Median cash burn fell 12% year-over-year as of Q2 2025 and the share of fintechs with positive net margins rose from 8% to 22% since end-2022.

What crypto and stablecoin trends did SVB highlight on Oct 21, 2025 (FCNCA)?

The report noted growing acceptance of stablecoins, crypto-focused funds making up two-thirds of fintech funds, and total crypto market cap surpassing $4 trillion.

How is fintech M&A performing according to the Oct 21, 2025 report?

Fintech M&A are on pace for a record year with more than 200 announced deals; median disclosed sale price is about 4x total capital raised.