Fintech has been within the dumps for some time now, and with corporations like Brex as soon as once more reducing workers as they attempt to rein in prices, you’d be forgiven for assuming that the marketplace for monetary know-how merchandise is struggling.
Properly, not likely.
Brex won’t be having a very good couple of quarters, however there’s ample constructive information from the world of fintech to offset all of the negativity across the sector. Bilt Rewards’ new huge spherical is an efficient instance of the opposite aspect of the coin: The rewards-focused startup simply raised 9 figures at a considerably larger unicorn valuation.
The Alternate explores startups, markets and cash.
Learn it each morning on TechCrunch+ or get The Alternate e-newsletter each Saturday.
Elsewhere, BNPL large 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 buyers are nonetheless cautiously optimistic about it.
So, which startups are drawing probably the most reward from buyers? We will reply that query comparatively simply immediately because of a brand new checklist compiled by GGV US that highlights 50 fintech startups enterprise capitalists assume are sizzling stuff. We additionally spoke to GGV managing associate Hans Tung about what he’s seeing within the sector immediately.
We’ll dig into the subsectors shortly, however if you wish to minimize to the chase: Lending, treasury administration, and the CFO stack are items of the fintech puzzle properly 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 immediately? A great portion of the present angst possible arises from plenty of typically robust startups that raised an excessive amount of at very excessive valuations a number of years in the past. These huge fundraises usually led to overhiring and fairness costs that don’t align with immediately’s norms.