UK fintech funding just crashed 43% in Q1.

The easy money is gone. But here's the twist—smart capital is still flowing, just into different veins.

Fasset just raised $51M. Stablecoin infrastructure and B2B embedded finance are the new magnets. Generalist fintech apps? Dead money.

Three sub-sectors where the smart money is going right now:

1. Stablecoin infrastructure for ISO 20022 cross border payments
Forget consumer crypto. The real play is rails that settle in seconds, not days. Fasset's raise proves VCs want pipes, not apps.

2. B2B embedded finance with AI banking layers
Agentic AI is eating back-office processes. Fiserv and Anthropic are already in. If your startup isn't pairing embedded finance with AI decisioning, you're invisible to investors.

3. Open banking pricing that actually works
Plaid, Token.io, Vyne—the winners are those making A2A payments cheaper than card processing cascading. Stripe and Adyen are watching. The margin game is shifting.

What's not getting funded: neobank clones chasing Monzo or Revolut's profitability. Investors want break-even, not break-the-bank.

The takeaway? Stop building for consumers. Build for the rails underneath.

What's your take—hit me below?

#fintech #UKfintech #embeddedfinance #stablecoin #openbanking