Fintech has been within the dumps for some time now, and with corporations like Brex once again cutting staff as they attempt to rein in costs, you’d be forgiven for assuming that the marketplace for monetary know-how merchandise is struggling.
Properly, not likely.
Brex may not be having a great couple of quarters, however there’s adequate optimistic information from the world of fintech to offset all of the negativity across the sector. Bilt Rewards’ new massive round is an effective instance of the opposite facet of the coin: The rewards-focused startup simply raised 9 figures at a considerably increased unicorn valuation.
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Elsewhere, BNPL large Klarna has been busy retooling its business for extra revenue and continued progress. So, yeah, whereas there was a stark lack of fintech corporations going public not too long ago, capital is flowing into the sector as a result of enterprise buyers are nonetheless cautiously optimistic about it.
So, which startups are drawing probably the most reward from buyers? We are able to reply that query comparatively simply at present because of a new list compiled by GGV US that highlights 50 fintech startups enterprise capitalists suppose are scorching stuff. We additionally spoke to GGV managing companion Hans Tung, about what he’s seeing within the sector at present.
We’ll dig into the sub-sectors shortly, however if you wish to reduce to the chase: Lending, treasury administration, and the CFO stack are items of the fintech puzzle effectively value researching.
The issue with (2021) fintech
Earlier than we dig into the excellent news, let’s speak narratives. Why does fintech appear to be it’s caught in first gear at present? A very good portion of the present angst possible arises from a variety of typically robust startups that raised an excessive amount of at very excessive valuations a number of years in the past. These large fundraises typically led to overhiring and fairness costs that don’t align with at present’s norms.
