Logbook
European Data and Fintech
We have met with various European Data and Fintech companies and attended one Investor Day.
Fintech has broadly been out of favor since 2022 when interest rates transitioned from a prolonged period of near‑zero rates to a significant tightening cycle. At a low cost of capital, the appeal of expansive total addressable markets in financial services attracted numerous investors willing to finance growth irrespective of profitability constraints. However, as traditional financial companies regained relative attractiveness and cost of capital increased, fintechs were forced to demonstrate they could have sustainable and profitable business models.
