Unlock the BaaS world—where finance meets innovation, making banking more accessible, efficient, and personalized.

A key to banking future

The banking-as-a-service (BaaS) industry stands at the forefront of the banking revolution. BaaS growth potential is powered by digital shift, tech and fintech innovations, and changing consumer expectations. As more and more companies adopt BaaS solutions, investor interest in this promising sector is steadily growing.

Why it matters:

Market growth, along with investor enthusiasm, is paving the way for BaaS startups to dive into a sea of opportunities:

  • Financial inclusion: providing services to underbanked or unbanked populations
  • API economy: integrating banking services into non-financial platforms
  • RegTech: helping businesses comply with financial regulations
  • Cross-border payments: simplifying and reducing the cost of international transactions

Between the lines:

It’s not always smooth sailing. Startups need to deal with the regulatory landscape, address tech issues, and know how to secure vital BaaS funding.

Our team has significant experience with BaaS startups and knows how to build successful businesses that draw investor interest

Funding attracted
Startups supported
Sectors encompassed

What we do:

Our expert team is skilled in securing BaaS funding, managing M&A deals, creating solid business models and market entry strategies, and devising impeccable and visually appealing BaaS pitch decks.

Go deeper:

Explore our BaaS market research to know more about industry trends, market and funding opportunities, and potential risks.

3x growth
The BaaS market is expected to triple by 2032, reaching $16.3B.


In 2022, more than 85% of senior executives either implemented BaaS solutions or planned to do so.

Fueled by the rise in digital and cloud-based banking services and the increasing demand for financial inclusion

Individuals were unbanked in 2021.


Of banks have adopted cloud-based banking solutions.


Over 26 million digital banking apps were downloaded in 2022.


In 2022, BaaS startup funding exceeded $2.60B

Key verticals:

  • Payment Processing and Gateways
  • RegTech
  • Digital banking platforms
  • Lending and credit services

Leading BaaS investors

Write to us to know more

Challenges of BaaS startups

BaaS startups are reshaping the financial landscape, but they also face significant challenges.

Regulatory compliance:

It’s pivotal for BaaS startups to know and comply with numerous rapidly changing financial rules and regulations.

Why it matters

Failure to adhere to these standards and laws usually results in damage to the company’s reputation or legal consequences, like fines or even revocation of a license.

A case in point: in December 2021, Lithuania’s central bank fined European Merchant Bank €65K for not handling high-risk clients properly and several other AML violations.

What it takes:

To handle this challenge, BaaS startups need to:

  • Invest in the compliance team
  • Utilize RegTech to automate and manage compliance tasks efficiently
  • Ensure regular training and updates

Data security concerns:

Stats: third-party vendors were responsible for almost 90% of the data breaches in the financial sector. Plus, over 70% of customers claimed to leave the bank after a data leak.

Why it matters

The statistics highlight the necessity for BaaS startups to protect sensitive financial information. As financial platforms are prime targets for cyber attacks.

What it takes:

Must-haves for BaaS companies:

  • Implementing robust security measures
  • Conducting regular security audits
  • Adhering to global data protection regulations like GDPR

Tech scaling issues:

As BaaS startups grow, they must ensure their technology can handle more customers and transactions without service degradation.

Why it matters:

Inability to scale up their technology correctly can lead to:

  • Service outages affecting customer satisfaction
  • Operational inefficiency

What it takes:

To avoid tech scaling problems, BaaS startups should:

  • Utilize cloud-based solutions
  • Update and maintain infrastructure regularly
  • Partner with established tech providers

A case in point: it took a Nigerian BaaS provider, Anchor, only one year to achieve a remarkable 9x growth in their client base. It happened due to their extensive offerings package and effective scaling strategies.

Securing funds:

Attracting adequate BaaS funding comes with several obstacles due to:

  • High initial costs associated with setting up robust tech infrastructure
  • The necessity to obtain regulatory licenses
  • The importance of ensuring compliance with financial regulations

Stats: Over 60% of startups close their doors, failing to secure funds during Pre-Seed and Series A funding stages.

Why it matters:

Many investors are cautious about pouring big money into BaaS projects because of market volatility, regulatory changes, and tech disruptions.

What it takes:

To attract the attention of BaaS VCs, startups should:

  • Show a clear market need and product fit
  • Create a robust business model
  • Demonstrate a strong understanding of the regulatory landscape
  • Showcase innovative technology
  • Demonstrate scalability


How attractive is the industry to potential BaaS investors?

With its considerable market growth potential and high profitability, the BaaS industry is increasingly attractive for potential VCs.

If you are a BaaS startup, how easy is it to raise funding today?

Given a strong market entry strategy and robust business model, coupled with a unique value proposition and persuasive BaaS pitch deck, it’s not that difficult to raise funding for BaaS startups.

How long does it take to create a pitch deck and financial model for a BaaS startup?

Usually, our team needs from two to three weeks to craft a BaaS pitch deck and a financial model. Yet, in some cases, we may need more time. So, it’s better to contact us to know the exact time.

What are the key mistakes BaaS startups make in their pitch decks?

Most BaaS startup pitch decks lack a persuasive investment storyline and a clear market decision. Plus, the absence of a robust business strategy and proof of progress. Like this, BaaS venture capitalists don’t get the full picture and may shift their focus to a more promising and urgent project.

How competitive is the BaaS market?

The BaaS market is brimming with various startups and numerous top industry players, all trying to get a competitive advantage and stand out.

What services do you provide for investors looking to invest or already investing in BaaS?

We help VCs scrutinize their investment opportunities within the BaaS industry. Our team conducts thorough due diligence and presents findings in a concise, visually rich presentation packed with valuable insights. Plus, we provide comprehensive fundraising services to portfolio companies across the BaaS sector and beyond.

Do you provide BaaS M&A support?

Yes, of course! Our experts help pinpoint the most beneficial M&A options, create compelling CIMs, and perform modeling for buy-side and sell-side deals.

Do you make intros to BaaS VCs?

Yes, we do! If your project matches criteria like round size, team, and product, we can help you pitch to top BaaS VCs. This service is just the tip of the iceberg of our investor relations package, which not only builds a pipeline of investors interested in BaaS but also gears up founders for the first meetings and ensures communication post-deal.

Do you have available data or research to purchase on the BaaS market?

Sure thing! On request, our team can provide bespoke market insights on the BaaS industry. This service includes detailed industry reports, insightful competitor evaluations, and comprehensive market research. Utilizing data taken from credible databases, we facilitate a deep and broad understanding of the BaaS sector, highlighting its intricacies, potential, and competitive dynamics.

Which growth stage of companies have you worked with in the past?

Our experts help not only in guiding BaaS startups through the Seed to Series B funding stages but also assist during Pre-Seed and Series C+ funding rounds, forging cooperation with the top players and investment funds.

Building a solution in the BaaS industry? Get in touch with us

Fuel your next stage of growth with Waveup—your one-stop shop for fundraising support, outsourced M&A advisory, growth strategy consulting, and presentation design. Leave your email, and let's chat!

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