• Email Us: [email protected]
  • Contact Us: +1 718 618 4351
  • Skip to main content
  • Skip to primary sidebar

Medical Market Report

  • Home
  • All Reports
  • About Us
  • Contact Us

Fintech founders can learn a lesson about frugality from these industry leaders

October 8, 2021 by David Barret Leave a Comment

Dave Mullen
Contributor

Share on Twitter

Dave Mullen is an investor at SVB Capital, where he focuses largely on fintech, proptech and insurtech. Dave was previously an investor with Wells Fargo’s principal investment arm and is currently the proptech vertical lead for the EVCA.

Venture-backed fintechs raised a record $30.8 billion in the second quarter of this year, up 30% over the same quarter last year. And they’re raising more, and faster, than ever — the average deal size stands at $47 million this year.

So, with fintech founders now sitting on mountains of cash as a result, just how are they spending it all?

Unfortunately, data across private and public companies generally doesn’t show discernible trends in how these dollars are spent. That said, perhaps some answers to the question of how well capital can be allocated are hiding in plain sight.

Looking to the leaders

There are now a slew of fintech startups approaching or far surpassing $10 billion in value — the table below has a selection of the most prominent — so we can glean some insight into their capital allocation strategies by considering how they have spent to achieve their position in the ecosystem. Some may argue that the differences in business models among these companies, their disparate markets, and studying a ten-year span of capital raising might make it challenging to extract any relevant insights. But their fundraising and business building behaviors indicate otherwise.

Studying this selection of fintech “leaders” can give us core takeaways on how they have funded and built their businesses. Most of these companies built their business over the course of two years before launching their product and scaling rapidly with limited capital, sometimes even before a Series A — quite a departure from what’s happening in today’s fundraising environment.

Many of these companies nurtured early champions of their product in both customers and distribution partners, which allowed them to grow and scale without needing to sell to enterprises. All of them eventually raised monster rounds — at an astounding 174x multiple of the capital raised before launch — but they waited to do so until after their product had already been adopted by the market.

Fundraising and launch trends among select leaders in fintech. Image Credits: Dave Mullen

All of these businesses share three common traits.

A valuation inflection point

Despite having different business models, end markets, and being founded at different times, this sample showed a consistent valuation inflection point. Generally, these companies launched their product just after the Series A, used their Series B to pour fuel on the fire, and then hit a 5x valuation uptick at the Series C.

Source Link Fintech founders can learn a lesson about frugality from these industry leaders

David Barret
David Barret

Related posts:

  1. Tesla ordered to share Autopilot data with the US traffic safety agency
  2. Thai lawmakers debate long-awaited legislation on torture, abductions
  3. Di Grassi stays in Formula E with Venturi after Audi exit
  4. Exclusive: China’s regulators tighten scrutiny of FX dealers – sources

Filed Under: News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • “Colossal Claude” From Oregon Folklore Accused Of Causing Underwater Eruption
  • Building Blocks Of RNA And Vitamin B3 Found On Asteroid Ryugu
  • Ancient 60,000-Year-Old Eagle With 3-Meter Wingspan Could Probably Have Given Frodo A Lift
  • AI Has Finally Worked Out How To Draw Hands (Sort Of)
  • Ancient Roman Women Were Banned From Joining The Army. They Fought Anyway
  • Bog Bodies Were Overwhelmingly Killed By Violence, Analysis Of 1,000 Bodies Finds
  • Martian Cities Could One Day Be Built From Potatoes And Dust
  • There’s A Weird Reason Why Hurricanes Never Cross The Equator
  • Deadly Fungal Contagion Dubbed “Urgent Threat” By CDC Is Becoming More Infectious
  • The Eye-Popping Truth Behind The Legend That Your Eyes Can Pop Out When You Sneeze
  • Spirals, Tails, And Reflective Dust Were Released In The DART Asteroid Collision
  • Diabetic Neuropathy Market Is Poised To Value Over USD 10.2 Bn By 2032 | CAGR 8.2%
  • Animation Shows The Most Powerful Cosmic Events If They Were Visible To Our Eyes
  • Cardiovascular Device Market Size is Expected to Reach Over USD 104.7 Bn by 2032 | CAGR 6.4%
  • Vesuvius Challenge – Decipher These 2,000-Year-Old Scrolls And Win $1 Million
  • Researchers Have Found Where The Energy Goes In Quantum Turbulence
  • Emergency Alert Test To Ping Every Phone In The UK, Temporarily Blocking Apps
  • New IPCC Climate Report: “We Are Up The Proverbial Creek, But We Do Have A Paddle”
  • It’s The Spring Equinox, But Does That Really Mean Equal Day And Night?
  • The Devil’s Kettle: For Decades, Nobody Knew Where This Underground River Led
  • Business
  • Health
  • News
  • Science
  • Technology
  • +1 718 618 4351
  • +91 78878 22626
  • [email protected]
Office Address
Prudour Pvt. Ltd. 420 Lexington Avenue Suite 300 New York City, NY 10170.

Powered by Prudour Network

Copyrights © 2023 · Medical Market Report. All Rights Reserved.

Go to mobile version