spring 2026 Pascal Bouvier, co-founder and Co-Managing Partner of Middlegame Ventures, shares his perspective on what drives fintech investment – from AI and tokenisation to Luxembourg’s role as a European hub. BY LENA MÅRTENSSON What advantages does Luxembourg offer fin - tech companies looking to grow and expand? Fintech startups targeting the funds industry would be well advised to consider Luxembourg as either their main hub or one of their sub-hubs: it is the second-largest investment fund centre worldwide and the largest in Europe. Many key players in the industry are here, allowing them to be close to potential clients. Another advantage is the strong ecosystem with a high level of expertise in the funds industry. Being in Luxembourg gives access to an attractive talent pool, including people with extensive experience in sales and client relations roles, who provide valuable insights for product development. At the same time, regulatory experts offer invaluable guidance for com- panies to navigate regulatory and licensing issues. For Middlegame Ventures, it is very convenient to op- erate from Luxembourg, as it is centrally located for all our investments in Europe. The close-knit ecosystem of- fers great opportunities to connect with decision-makers involved in policy, regulation and fundraising. We al- ready have two Luxembourg-based companies in our portfolio, and we expect more to follow. Are there any areas where Luxembourg needs to improve to better support fintech innovation? Earlier this year, Luxembourg introduced a 20% tax credit for private investments in startups, capped at €100,000 per year. There are also plans to introduce tax incentives for employee stock options to make work - ing at a startup more attractive. These are definitely steps in the right direction. Helping funds like ours to grow is important because the more capital we attract, the more we can invest in future fintech startups. Another key point is building additional bridges between the different players in the ecosystem – incumbents, startups, regulators and oth- ers. Much has already been done by players supported by the Ministry of Finance, such as the Luxembourg House of Financial Technologies (LHoFT), and contin- uing in this direction is important. What is your outlook on the future of fintech in Luxembourg and Europe as a whole? Europe needs more and better startups, as well as a unified capital market. To achieve this, there is a need for rationalisation, simplification and homogenisation of rules and regulations across the EU so that investors like us can grow and attract capital from across the con- tinent. However, this should be done while preserving the specific characteristics of highly sophisticated and specialised regulatory hubs such as Luxembourg. Updating rules to speed up the business creation process should be considered as a priority. Equally, closing a business should also be made easier. Last but not least, as Europeans, we need to address the harmful stigma of failure. There is only one way of succeeding with innovation: create and test repeatedly until you find a concept that works. FINTECH © Middlegame Ventures