Why top banking executives are choosing startups — and what it takes to get them there

European fintech venture builder 0TO9 has launched Flow & Partners, a new company focused on providing working capital solutions to fast-growing European businesses. This initiative, led by former banking executive Jessica Sparrfeldt, addresses a significant capital gap in the market, aiming to unlock trillions of euros currently tied up in business operations. The move highlights a growing trend of established financial professionals transitioning to the startup ecosystem to tackle specific market inefficiencies. Flow & Partners offers cash flow-based financing and factoring solutions, targeting B2B companies across Europe. This approach provides access to capital by unlocking funds tied in receivables, inventory, and payables, a crucial service given the prevalent late payments crisis in the EU, where average payment periods exceed 60 days. The company plans to expand its operations significantly, aiming to scale from its current four markets to 21 across the continent. The broader implication for European digital policy is the increasing focus on homegrown fintech solutions to bolster economic growth and digital sovereignty. By addressing structural issues within traditional finance, startups like Flow & Partners are creating alternative pathways for businesses, reducing reliance on potentially less agile, older financial models and strengthening the European digital economy. This initiative is part of 0TO9's larger goal to establish 1,000 profitable fintechs by 2045.