The Rise of Fintech Founder Factories: How European Unicorns Are Breeding New Startups
In a new report from venture capital firm Accel, Swedish digital payments firm Klarna has been crowned the most prolific fintech “founder factory” in Europe. The term refers to companies that have become breeding grounds for talent, with alumni going on to establish their own successful startups.
Klarna Leads the Pack
Klarna, valued at over $1 billion, has produced an impressive 62 new startups, including lending technology firm Anyfin and AI-powered coding platform Pretzel AI. This surpasses other notable fintech unicorns such as Revolut, Wise, and N26, which have spawned 49, 33, and 33 new companies, respectively.
A Hub for Innovation
According to Accel’s report, nearly two-thirds (61%) of companies founded by former fintech unicorn employees are established in the same city as the unicorn. This suggests that European tech hubs are experiencing a “flywheel effect,” where large companies scale, talent is retained, and new ventures emerge.
Why Klarna Stands Out
Accel partner Luca Bocchio attributes Klarna’s success to its maturity and size, as well as its unique internal work culture. “Klarna is an organization that is coming of age now,” he says. “It’s well-positioned to produce interesting founders.”
The Future of Fintech
As the fintech landscape continues to evolve, it’s likely that this trend will persist. With talent remaining within the ecosystem, the flywheel effect is expected to continue spinning, driving innovation and growth in European fintech.
By the Numbers
- 82 venture-backed fintech unicorns in Europe and Israel have produced 635 new tech-enabled startups.
- 61% of companies founded by former fintech unicorn employees are established in the same city as the unicorn.
- Klarna has produced 62 new startups, more than any other fintech unicorn in Europe.
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