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Last year There has been a wholesale trade-off in how the market feels about fintech. A year ago, almost every investor had a fintech thesis, companies were racing to go public and investors at all levels of the market were fighting to squeeze money into the hands of founders.
That is no longer true. The fall in prices on the public market is the worst. The biggest fintech companies that went public in the last two years are now worth less than what they’ve raised. And that confidence has now permeated all levels of the market.
Understandably, many early stage founders are not ready to consider that their idea’s valuation – which took ten years to reach its goal – is now worth 75% less than it was six months ago.
But the sector’s long-term view doesn’t matter to most investors and founders. The good news is that we are still seeing deals being completed. Successful founders in this environment quickly adapted to the new reality.
Money tends to attract money, so look for ways to get the ball rolling.
Here are four strategies that the best early-stage fintech founders are using to fundraise right now.
Be aware that bid/ask spreads will be wide
You are not; It’s the market. The best founders understand that the goal is to close a round, not to maximize value or minimize simplification.
It is good to reduce the simplification but not to lose the harmony.
Make a long-term fundraising plan
While quick deals are still done with proven founders and special teams, the average fundraising round, including due diligence and paperwork, can now take four to five months. The days of Notion-doc-over-a-weekend are firmly over.
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