Fintech has been within the dumps for some time now, and with corporations like Brex as soon as once more reducing employees as they attempt to rein in prices, you’d be forgiven for assuming that the marketplace for monetary expertise merchandise is struggling.
Properly, probably not.
Brex may not be having a great couple of quarters, however there’s ample optimistic information from the world of fintech to offset all of the negativity across the sector. Bilt Rewards’ new large spherical is an efficient 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 big Klarna has been busy retooling its enterprise for extra revenue and continued development. So, yeah, whereas there was a stark lack of fintech corporations going public just lately, capital is flowing into the sector as a result of enterprise traders are nonetheless cautiously optimistic about it.
So, which startups are drawing probably the most reward from traders? We are able to reply that query comparatively simply right now due to a new record compiled by GGV US that highlights 50 fintech startups enterprise capitalists suppose are scorching stuff. We additionally spoke to GGV managing associate Hans Tung, about what he’s seeing within the sector right now.
We’ll dig into the sub-sectors shortly, however if you wish to lower to the chase: Lending, treasury administration, and the CFO stack are items of the fintech puzzle properly price researching.
The issue with (2021) fintech
Earlier than we dig into the excellent news, let’s discuss narratives. Why does fintech appear to be it’s caught in first gear right now? portion of the present angst probably arises from quite a few usually sturdy startups that raised an excessive amount of at very excessive valuations a number of years in the past. These large fundraises usually led to overhiring and fairness costs that don’t align with right now’s norms.
