Founders Unfiltered 2025 Report Released: Key Insights into Early-Stage UK Fintech Startups

The highly anticipated Founders Unfiltered 2025 report has been officially released, offering an in-depth exploration of the challenges, strategies, and successes of early-stage fintech startups in the UK.

Produced by Sam Shaw Media and Ninety Two Ventures, this report is based on conversations with 14 fintech founders, shedding light on the realities of launching and scaling a fintech business in today’s competitive market.

Among the featured startups is Credit Canary, a FinTech Wales member and graduate of FinTech Wales Foundry Season Three. Credit Canary provides lenders with insights into borrowers’ financial distress, enabling proactive engagement before loans become problematic.

Key Findings from the Report

The Reality of Fundraising

Many founders struggle with securing early-stage investment, citing a lack of clarity in the venture capital (VC) landscape. Key issues include:

• Mismatch in investor expectations: Founders often find that VC firms’ stated investment criteria don’t always align with their actual funding decisions.
• Bias in funding: Challenges persist for underrepresented founders, including gender and age-related biases.
• Need for strategic investors: Founders prefer investors who provide more than just capital, such as industry connections and mentorship.

Commercial Strategy and Pivoting

Early-stage fintechs frequently adapt their business models based on real-world market feedback:

• Pivoting is common: Most startups shift away from their original model after identifying gaps between their vision and market demand.
• Customer education is crucial: Many fintechs face hurdles in getting customers to understand their products, which slows early adoption.
• Trust and data are central: Winning customer trust through transparency and smart use of data is key to long-term success.

Regulation: A Double-Edged Sword

While the UK’s regulatory environment is seen as progressive, it also presents challenges:

• Timing regulatory engagement: Engaging too early burns capital, while engaging too late can lead to missed opportunities.
• Complex compliance landscape: Navigating multiple regulators and evolving rules adds an extra layer of difficulty for fintech startups.
• Regtech solutions on the rise: Founders highlight the need for better automation and AI-driven regulatory compliance tools.

Talent and Culture Challenges

Building a strong team in a resource-constrained startup environment remains a major challenge:

• Hiring for mindset over experience: Adaptability and drive often outweigh formal qualifications in fintech startups.
• Retention struggles: Startups face difficulties keeping top talent due to competition from larger firms.
• Remote and flexible work models: Many founders leverage remote work and non-monetary benefits to attract and retain employees.

For a detailed exploration of the report, you can access the full document here.