Evaluating only Solaris (Solarisbank)’s profile at its peak — without knowing the outcome — the model ranked Unit economics as the #1 likely cause. Documented cause: Regulation.
Key Events Timeline
FOUNDING
Solarisbank founded in Berlin as Germany's first Banking-as-a-Service platform with full bank license.
FUNDING
Raised €190M Series D at €1.4B valuation with Samsung and VISA among investors.
REGULATORY ACTION
BaFin issued formal deficiency notice demanding AML fixes and €110M capital injection within 12 months.
LAYOFF
Cut 250 jobs, replaced CEO, valuation fell ~80% to approximately €300M in distressed funding round.
Full Analysis
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Documented cause
Berlin-based Banking-as-a-Service platform Solaris, once valued at €1.6B and backed by Samsung, VISA, and HV Capital, faced an existential crisis in 2024 after BaFin issued a formal deficiency notice in 2023 citing inadequate anti-money laundering controls and risk management failures. The regulator demanded a €110M capital injection. The company cut 250 jobs (30% of staff) in early 2024, saw its valuation collapse by ~80%, and underwent forced leadership restructuring.
Lesson
“Banking infrastructure platforms must achieve full regulatory compliance before scaling — BaFin actions cannot be deferred.”