RISK MANAGEMENT
Market , technical and regulatory factors are integral to good risk management in Fintech . Here , we explore best-practice for venture capitalists
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Venture capital ( VC ), whether conducted by individuals or firms , can provide opportunities for some of the newest and most exciting tech-based companies in the world to get a foothold in the market and drive fast-paced expansion across the globe .
Companies like Alibaba and Chinese FinTech Qudian break the mould by driving both anticipation and engagement with their platform and subsequently delivering significant returns to investors within a relatively short time frame – Qudian managed to raise USD $ 900mn after going public in 2017 , an impressive feat for a company founded only four years prior . However , while FinTechs can sometimes exceed all expectations , this isn ’ t to say that VC doesn ’ t carry inherent risks .
After all , startups by their very nature are often helmed by inexperienced entrepreneurs , initially have little to no market recognition or sales traction and usually require careful guidance to lead their product or service from conception to implementation . Despite this , VCs can still be captivated by an enticing idea or proposition and commit potentially millions
OCTOBER 2020