VCs aren’t betting on fintech
fintech is With the recession having been going on for some time now, and companies like Brex once again cutting staff as they try to rein in costs, you’d be forgiven for assuming that the market for financial technology products is expanding. Is struggling.
well not really.
Some quarters in the breaks may not be good, but there is enough positive news from the world of fintech to outweigh all the negativity in the sector. Built Rewards’ new massive round is a good example of the other side of the coin: The rewards-focused startup raised nine figures at a significantly higher unicorn valuation.
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Elsewhere, BNPL giant Klarna is busy restructuring its business for greater profits and continued growth. So, yes, while there has been a severe lack of fintech companies going public recently, capital is flowing into the sector as venture investors are still cautiously optimistic about it.
So, which startups are garnering the most praise from investors? We can answer that question relatively easily today, thanks to a new list compiled by GGV US that highlights 50 fintech startups that venture capitalists think are hot things. We also spoke to Hans Tung, Managing Partner of GGV, about what he’s seeing in the sector today.
We’ll delve into the sub-sectors shortly, but if you want to cut to the chase: lending, treasury management, and the CFO stack are pieces of the fintech puzzle that are worth researching.
(2021) The problem with fintech
Before we look at the good news, let’s talk narratives. Why does it feel like fintech is stuck in first gear today? A great deal of the existing resentment probably arises from several causes. generally strong Startups that raised a lot of money at very high valuations several years ago. Those massive fundraises often led to overhiring and equity prices that are not in line with today’s norms.