From NBC Universal: 2024-10-22 06:24:10

In the UK, buy now, pay later firms like Klarna and Afterpay may face tougher regulations. Klarna has spun out more startups than any other European fintech unicorn. Alumni from Klarna have created 62 new ventures, making it a leading “founder factory.” Successors of Revolut, Wise, and N26 have also started multiple companies.

Klarna’s founder and CEO, Sebastian Siemiatkowski, aims to reduce the company’s headcount to 2,000 employees using generative AI. Despite workforce reductions, Klarna’s ability to produce startups lies in other factors. Klarna’s ranking as a top founder factory is due to its maturity, size, and internal operations, according to Accel.

Former employees of fintech unicorns often found their startups in the same cities as their former employers. Europe is experiencing a “flywheel effect,” with staff scaling up within tech giants and then exiting to establish their own ventures. This trend of talent staying within the ecosystem is a sign of maturity and growth within Europe’s fintech scene.

Read more: Klarna produces more startups than any other European fintech: Accel