PRIVATE EQUITY AND INVESTMENT
Fintech startups : Attracting investment in today ’ s buyer ’ s market As investors look for fintech startups with the greatest growth potential , there are things startups can do to maximise this , drawing the attention of VCs and other investors .
For Bradbury , startups must “ demonstrate an ambitious but achievable growth trajectory and make the most of AI . There should be a focus on solving known issues or helping customers navigate upcoming regulatory changes .
“ That said , startups should not try to ‘ boil the ocean ’ and take on more than they can handle , instead focusing on making the journey to a scalable solution as easy as possible .”
One way to make the journey easier is to “ focus on solving a problem ”, says Cohen .
“ Too many startups , both within and outside of fintech , develop innovative technology and then look for appropriate use cases ,” he adds .
“ Instead , startups must ensure they are solving a real challenge for potential customers .”
Cohen continues : “ Startups should aim for a good balance between profitability and growth . Profit is no longer a ‘ dirty word ’ and clear paths to profitability are required by today ’ s discerning investors .
“ They should also take advantage of our new truly global talent marketplace . By hiring the best people , leaders are demonstrating that they know what ‘ good ’ looks like and are comfortable delegating .
“ Companies that build a team with diverse skillsets showcase a commitment to continuous learning and adaptability . This is important , as it shows that those who have been hired are suited to running a fast-scaling business . DANIEL COHEN
TITLE : CEO COMPANY : PAYU GPO
Daniel Cohen is a seasoned executive , with broad experience in driving turnaround situations of functions , business divisions and companies . He has successfully and measurably improved top-line performance while creating cost efficiencies and profit growth .
“ Investors also appreciate a well-rounded team capable of handling various aspects of a business , staying ahead of trends and adjusting strategies accordingly .”
Wood agrees , adding that “ investors are particularly drawn to startups that “ solve real-world problems with innovative technology ”.
He concludes : “ A solid understanding of the target market , a clear plan for scaling and a robust risk management strategy are crucial . It ’ s also important for startups to show traction , either in terms of product development or early user adoption , to instil confidence in potential investors .”
Will there be a shift in the investment landscape ? With caution continuing to drive a buyer ’ s market in fintech , how will the investment landscape evolve as we head further into 2024 ?
116 March 2024