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A recent report from venture capital firm Accel has revealed that more startups are emerging from Swedish digital payments company Klarna than any other fintech unicorn in Europe. Alumni from Klarna have gone on to create 62 new startups, including companies like Anyfin, Bits Technology, and Pretzel AI. This surpasses other notable fintech unicorns like Revolut, Wise, and N26 in terms of startup creation.
Accel refers to these companies as “founder factories,” highlighting their role in fostering talent that goes on to establish their own ventures. The report also notes that out of 98 venture-backed fintech unicorns in Europe and Israel, 82 have produced a total of 635 new tech-enabled startups.
Klarna made headlines recently for implementing artificial intelligence to reduce its workforce by 24% to 3,800 employees. Despite this, Klarna remains a leading fintech founder factory in Europe, with Bocchio from Accel attributing this to the organization’s maturity and internal workings.
The report also highlights that most companies founded by former fintech unicorn employees tend to stay in the same cities and hubs where their employers were established. This trend reflects a “flywheel effect” in Europe, where tech firms are scaling to such a size that staff can leverage their learnings to start their own ventures.
Overall, the fintech landscape in Europe is experiencing a trend of talent remaining within the ecosystem, leading to a continuous cycle of innovation and entrepreneurship. Accel predicts that this trend will persist and drive further growth in the region’s fintech sector.
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Emily Jensen, graduated from the London School of Economics and Political Science (LSE) in the UK in 2015 with a degree in Economics. She specializes in financial markets and international trade. After graduating, she worked as an analyst at an investment bank in London, where she developed expertise in global economic trends. She later transitioned into consulting, focusing on fintech ventures and providing insights into global economic developments. Emily is passionate about the intersection of finance and technology and aims to drive innovation in the financial sector.
