1、Whats ahead for fintech?The fintech landscape&Accel Fintech 50There is real value creation aheadA significant crop of fintech hyperscalers has emerged-fintechs that have achieved scale,profitability and sustainable growthThe size of the prize remains huge-the global financial services industry is wo

2、rth$10 trillion.Some of the most valuable fintech companies were founded only in the last decade and still privateFollowing steep correction,the fintech market has been characterized by a return to baseline-private funding is returning to pre-COVID levels and public multiples stabilized in-line with

3、 long-term averageFintech stocks are performing well though still below COVID-highs.Fundamentals are key to value creation in the public markets,and profitability has been top-of-mind for fintech companiesFintech as a whole is returning to baselineAnd were excited about the next wave of fintech inno

4、vation in EuropeFinancial services still dominated by legacy software,many of which were built in the pre-cloud and pre-internet era,that lack flexibility and ability to build in automation capabilitiesGenerative AI is unlocking additional capabilities for AI in financial services for both internal

5、and external use casesBeyond better software,we believe LLMs taking the form of co-pilots can augment large part of human-intensive work in financial services,from accounting to BPOs to advisoryFounder talent continues to proliferate.Europe and Israel have multiple talent hubs that continue to feed

6、the second-generation talent flywheelKey Takeaways1Public markets2Private markets&exits3Fintechs reset4The opportunity ahead4Global excluding China;founded after PayPal(1998);market cap&EV=$500M+;+10%NTM growth or 19-24E CAGR.Includes next-gen payments,lending,challengers and software disrupting inc