Lets start with this; There IS NOT yet a fintech bubble. Oh, to be sure, there is a lot of hype and conversations going on about the hot sector so, ergo, if everybody knows about something it must be over, right? Wrong. There are so many applications to all the new technologies that one has a very hard time keeping up. Its just begun and the money is flowing. Not a bubble, its “just begun”. Know what the blockchain is? When you can explain it, THAT’S the top.
“Many argue this was the moment that launched fintech as we know it. Today, fintech is comprised of roughly 15,000 startups globally, all focused on either enabling or disrupting the industry.
Fintech is still relatively new, and yet it has a remarkable amount of money flowing through it. A recent report from CB Insights found that VC-backed fintech companies raised $2.7 billion in the first quarter of 2017 alone. And the report says the global value of fintech’s 22 unicorn companies amounts to $77 billion. While the pace of investment is likely to drop in the US this year, Europe saw an early spike in Q1.
The landscape is rich in opportunity for both investors and startups, from new lending, crowdfunding, and financial management platforms to novel payment, insurance, and investing services.
This week at Singularity University’s Exponential Finance Summit in New York, Mike Sigal, partner at 500 Startups, gave the audience a snapshot of the current abundance in fintech and a look into how investors and entrepreneurs are viewing the market.
500 Startups’ unique angle
Since it was founded in 2012, 500 Startups remains one of the most active early-stage investors in the world, according to Sigal. The company’s made nearly 2,000 seed investments across 50 countries and has $330 million in capital invested.
Within fintech specifically, the firm has invested in over 200 companies across 27 countries and invests in almost 40 new companies each year.
Unlike some traditional VC firms that tend to keep a tight focus on a specific industry vertical, 500 Startups prides themselves on maintaining an extremely diversified investment portfolio. So far, the results have been in their favor.
The company has four unicorns (startups valued a billion dollars) in their portfolio, including Credit Karma, Grab, Stripe, and Twilio. They also have invested in 40 companies that are now each valued between $100 million and a billion dollars…”