Investment in FinTech businesses has grown exponentially over the past decade and the growth continues to be on the rise. According to a 2021 report by Dealroom, FinTech startups raised $125B in VC funding globally, exceeding the total 2020 funding by 2.8 times. While this growth has been mainly driven by megarounds, early-stage funding has also been booming, especially in Europe and emerging markets. For example, 2021 saw almost 1,800 early-stage FinTech rounds, nearly twice as many as there were in 2016. NFTs, crypto exchanges & custody, revenue-based financing, neo brokers and BNPL made 2021 the year of FinTech.
With the growing number of FinTech projects and investor interest in FinTech startups on the rise, the process of selecting startups for investing is also becoming more complicated. While seasoned investors have their proven and trusted tactics, those looking to get into the field may not know where to start. As a global communications expert working with venture capital funds and startups alike, I compiled a few tips on what emerging investors should pay attention to before investing in FinTech and crypto, from a communications perspective.
