Well, seems the money pump for fintech startups may be in a bit of a drought. Third quarter investment in new fintech dropped in the third quarter versus last year’s mega funding. Perhaps, just a guess here, that valuations and this election thingy may be part of the problem. Maybe fintech venture firms will just have to back to lavish parties to money to work.
Hot new financial technology firms are getting a shorter look-see in this year’s 3rd quarter. According to KPMG and CB Insights, North America took a big hit in funding for venture backed new startups but the rest of the world held up pretty well. Of course there were some mega deals like Kabbage, SoFi and Avant that got huge amounts. Note that those were in the lending sector which ran into some sector specific issues in the quarter.
Another note; many mainline established companies (Goldman, Citi, etc) advanced their own technology with no need for venture firms. So, purses may be closed tighter but they are still available for the right deal.
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Posted by Bill Taylor/CEO-FintekNews
Source: Bloomberg