Public markets may have cooled off on fintechs in recent months, but for entrepreneurs still considering getting started, “looking good,” the Magic 8 Ball says.
In 2021, a third of all unicorns created were fintech companies: investor FOMO, increased use of digital payments, BNPL and other financial services created a gravitational field that attracted more than one in every five dollars invested by VCs last year.
But that data is available everywhere. What founders really want to know is: what are investors looking for now?†
To find out, fintech reporter Mary Ann Azevedo reached out to several active fintech investors to hear their thoughts on the state of the market in Q1 2022.
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“Each respondent was kind enough to let us know how they would like to be pitched, and just for the sake of grin, someone shared an example of a cold email that worked,” she writes.
Here’s who we polled:
- Anish Acharya, general partner, a16z
- Christina Melas-Kyriazi, Partner, Bain Capital Ventures
- Ethan Choi, partner, Accel
- Pete Flint, General Partner, NFX
- Munish Varma, managing partner, SoftBank Investment Advisers
- Nigel Morris, managing partner, QED Investors
- Tyler Griffin, Co-Founder and Managing Partner, Financial Venture Studio
- Nikhil Sachdev, General Manager, Insight Partners
- Mark Fiorentino, partner, Index Ventures
- Sheel Mohnot, General Partner, Better Tomorrow Ventures
“Crypto has come up more than once, and LatAm is hot, hot, hot when it comes to investor interest,” she discovered.
The research has lots of valuable tips for other investors, but we’ve put this together primarily to help fintech entrepreneurs and founders, so if you’re considering starting in this industry, or know someone who is, read and share. than.
We are free on Monday, February 21, in observance of Presidents’ Day in the US. Thank you so much for reading TechCrunch+ and have a nice weekend.
Senior Editor, TechCrunch+
3 keys unlocking data-driven fundraising
It is an opportune time to launch a new business, but rising interest rates, inflation and a number of other unknown factors can make investors more judicious when it comes to placing bets.
But data-driven founders who can tell a great story with the right metrics are much more likely to grab an investor’s attention, according to Blair Silverberg, co-founder and CEO of Hum Capital.
“Unfortunately, many companies don’t have an efficient way to collect, synthesize and interpret data in real-time insights, resulting in the default reliance on static, Excel-based sampling that may not capture the full picture of your company’s potential,” he says. .
Have venture capitalists underestimated startups for decades?
Here’s something that people in technology don’t like to talk about: there’s not a lot of institutional memory in this industry.
For example, many founders who closed funding rounds last year believe that when it rains, it pours, but that wasn’t always the case.
In fact, early stage starters are raising capital at higher levels and valuations today than their late stage counterparts a decade ago.
But were these older startups undervalued or did market dynamics dictate their pricing?
After a deep dive into new PitchBook data, Alex Wilhelm reports it could be a combination of both:
“It seems that more competition has helped unlock a fairer market price — yes, irony — and startups are now more likely to get their money’s worth.”
Transform startup investors into growth marketers without them noticing
Could your startup use more marketing support?
Most companies will put off taking on a full-time hire for growth as long as possible and instead rely on a PR firm to bolster their public presence, but that leaves one crucial resource untapped: investors.
According to Miles Jennings, founder and COO of Recruiter.com, investors will love to amplify your posts, but only if you make them shareable and engaging.
In an article for TC+, Jennings shares six tips that can help investors create attorneys that can serve as an extension of your marketing team.
Airbnb’s pandemic catapult nears completion
The pandemic was especially hard on travel and hospitality companies, and it was almost catastrophic for Airbnb.
But the company has since bounced back thanks to resurgent hospitality and tourism demand, and some favorable host policy changes, to the point where it’s “hundreds of millions of dollars in Q4 revenues ahead of 2019, when it had total revenues of $1.11 billion,” writes Alex Wilhelm.
Why startups might want to rent hardware instead of buying it?
The future of work is still being written, but in the meantime, every startup still has to put money aside for laptops, monitors and things for employees to sit on.
In the two years since the pandemic began proliferating office workers, many companies are now renting critical hardware for flexibility, optimizing tax deductions and scalability, Anna Heim reports.
In a well-researched post, she discusses the pros and cons of renting hardware, along with the tax implications for businesses in Europe and the United States.
How to Drive Organic Traffic with Earned Media
Few entrepreneurs are born storytellers, and perhaps it’s unfair to expect them to do better.
Many startups pay a PR agency a monthly advance of $10,000 or more, but their chances of posting a story about their company are not much greater than spinning a roulette wheel.
According to Amanda Milligan, head of marketing at Stacker Studio, startups can increase organic traffic and improve SEO by developing newsworthy content that gets picked up and shared by media.
In a classic TC+ how-to, she explains how to create earned media that organically improve keyword rankings, referring domains, clicks, and other key SEO metrics.
Dear Sophie: Should we apply for a K-1 visa or a marriage-based green card?
I am a US citizen who has temporarily lived and worked in Germany for the past year.
I got engaged to my wonderful partner last month – a German citizen – but I now have to return to the US for work in a few months.
Should I get a K-1 visa for my fiancé so she can come with me when I come back to the US, or should we get married and live separately until she can get a green card and join me in the US?
—Looking for a quick solution
How do you find a job as a scout for a VC company?
No lie: some venture capitalists are as rich as Croesus and are getting richer.
Many are former founders, but still: Becoming a VC isn’t easy without the right connections and experience. Without a successful exit or a Stanford network, one way to break in is to work as a scout seeking deals.
Versatile VC founder David Teten and collaborator Akshat Dixit explain what it means to work as a scout, the earning potential of the role, the process of getting a job and what questions to ask if you run into yourself in an interview.
In addition, the authors have compiled a long list of VC companies that offer scouting programs: happy hunting.
Why you shouldn’t ignore Europe’s deep tech boom
While deep tech has laid the foundation for many mainstream and enterprise applications, investments in this area have been largely confined to specialty VC firms.
However, the space is seeing a resurgence and European VCs appear to be doubling down on the belief that deep tech startups will deliver generous returns, wrote Anna Heim and Alex Wilhelm.
For The Exchange, they analyzed Angular Ventures’ report on VC investments in enterprises and deep tech in Europe and Israel, which found that “capital is flowing into the right areas to form a European deep tech nexus, or cluster of nexuses.” .”
Itai Damti of Unit explains how the company raises money using culture and value
Culture is an aspect that many founders like to dwell on, but few have a concrete plan or vision of how to cultivate the environment they want.
Unity’s Itai Damti considers culture so important that he and co-founder Doron Somech created a document the company uses to communicate their values and expectations to its employees.
Emmalyn Shaw, managing partner at Flourish Ventures, said it was a key factor in her decision to support the company: “In my more than 20 years, I have never seen a document like this.”
In the latest edition of TechCrunch Live, Damti and Shaw discussed Unit’s pitch deck, the unconventional format that put their experience above the product, and how the deck has helped them successfully fundraise.