Candidate advice

FinTech Is Booming – But Failures Are Rising: What You Must Check Before Joining a Start-Up or Scale-Up in 2026

December 17, 2025

Fintech has never been bigger. There are now 30,000+ FinTech’s globally and 2,500-3,000 in the UK - more than twice the number a decade ago.

But here’s the reality candidates often miss:

Roughly 70% of venture-backed FinTech’s fail within 3–5 years
Hundreds shut down or quietly wind down every year
Funding is far more selective than the 2021 boom
Many FinTech’s are built to be acquired, and acquisitions often lead to redundancies

Fintech isn’t collapsing but the weak are being flushed out fast. That means due diligence is essential before accepting an offer.

Why FinTech roles carry more risk in 2026

1. Funding isn’t easy anymore

Investors expect real revenue, controlled burn and early profitability. Many FinTech’s simply run out of runway.

2. Regulation has tightened

Payments, lending, wealth, crypto and BNPL now face full regulatory scrutiny. Weak governance is a business-ending risk.

3. Many FinTech’s are designed to be acquired

A large number are built with a 3-7 year exit plan. After acquisition:

Roles get duplicated
Teams get merged
Redundancies are common
Equity often pays out far less than expected

4. Employer brand won’t protect you

Even top-tier FinTech’s have had layoffs and restructures. Candidates must assess stability themselves.

The due-diligence questions you must ask

Funding & runway

When was the last round?
How long is the runway at current burn?
Is profitability or more fundraising the plan?

Customers & revenue

Who’s paying today?
How recurring is revenue?
Any reliance on one major client?

Regulation

Are you authorised?
Who owns compliance?
Any recent regulatory issues?

Acquisition intent

Is independence the goal or is acquisition likely?
What happens to roles like mine post-acquisition?

Role clarity

What does success look like at 6 and 12 months?
What resources actually exist?

FinTech compensation: what you can negotiate

FinTech’s often give flexibility that large corporates can’t:

1. Equity

What % does this represent (fully diluted)?
What happens in an acquisition?

2. Cash protections

Longer notice periods
Guaranteed severance
Retention bonuses
Redundancy protection clauses

3. Lifestyle & career benefits

Faster progression
Hybrid/remote
Broader responsibility
Access to founders and decision-makers

These can outweigh a slightly lower base salary.

FS Talent’s Straight View

FinTech offers amazing opportunities – We work with some of the very best!

The strongest bets in 2026 are well-funded, well-governed scale-ups with real customers, strong compliance and experienced leadership.

The riskiest moves happen when candidates rely on brand or hype rather than facts.

If you’re considering a FinTech or scale-up role, FS Talent can help you validate stability, assess risk and negotiate the right package. The right questions now can save you from the wrong move later.

INSIGHTS