How Innovative Fintech Startups can Find Investment?

Fintech representing the technology-driven financial industry, largely drives the modern financial and banking industry. Because of this, any new startup with a unique idea of streamlining financial services opens up a level-playing field to join the booming Fintech bandwagon. You know, many banking success stories were shaped by the Fintech revolution. HDFC’s success story in recent years shows how large banks are stepping into the Fintech foray. 

But to begin with a fintech startup, you need capital, and you cannot search for gold mines, right? Instead, you must go through a complex process involving a lot of ifs, but, and conditions. But before raking your brain on where to find funds for your Fintech startup, it is important to take a closer round look around your startup idea and the core success metrics. Some of the key aspects apart from funding that matters for the success of your Fintech include the following.

• Feasibility: Is the idea behind your fintech business really feasible, and are the business objectives achievable? This is the first thing you need to ask. 
• Demand: Does the Fintech service you provide have enough market demand? Whether it is popular or sought-after enough, you should evaluate it. 
• Define the Audience: Do you have a clear idea about the user audience who will use your fintech solution? You need to define the user audience clearly for the Solon or service. 
• A Future-proof Business Model: Is your fintech solution grounded on a sustainable and fully future-proof business model? It should be validated against evolving business challenges. 
• Define the Short-term & Long-term Objectives: For your fintech business, you should have clear short-term and long-term goals. Without a clear and time-specific business goal, no business survives. 
• Reliable Business Network: Do you have an established business network for running the business? A network is crucial for Fintech’s solid industry, as fintech solutions and services are primarily interdependent.

You have a clear picture of all the key considerations you need to focus on to shape your fintech startup’s success. But the biggest question remains unanswered, and it is about funding your fintech solution or service. Let us look at some of the tested and tried funding methods that are used to build a fintech app.

Reach Out to Angel Investors

For Fintech startups, reaching out to angel investors is always a good option. This has become one of the most reliable funding options for most tech startups. There are many ways to reach out to angel investors worldwide. You can reach out to well-known investors directly or through a reliable agency with thousands of investors in their global network. You can also participate in major tech startup events and competitions and make your work or project known directly to potential investors.

The objective of screening the right investors for a fintech startup is to match with the right investor who is likely to take an interest in your project. This is why it is always helpful to hold the hands of firms with strong angel investor networks instead of individual initiatives to reach out through cold-emailing. If you can create a great Proof of Concept (POC) for your fintech startup, it is also helpful to showcase it in tech events where many investors participate.

Venture Capital

Another major source of funding is venture capital. Venture capital firms can raise money for lucrative startup projects quickly to get the project going in no time. Venture capital firms floated by big companies can be found worldwide that always look for lucrative projects with short-term and long-term gain opportunities and huge potential returns.

In this respect, it is important to remember that these big businesses invest in new ventures following shrewd and meticulous analysis of the revenue and growth potential. Hence, your startup idea and the PoC should be fully future-proof and inspiring for investors. The investment mindset and focus are also shaped by their core business interest and the types of businesses they consider essential for future growth potential.

Crowdfunding Platforms

Another popular and widely-availed funding option for Fintech and other tech startups is crowdfunding. There are too many crowdfunding platforms across the business niches, and for fintech startups, there are at least a few dozen. But crowdfunding through these platforms also needs good marketing skills and a well-articulated plan.

To begin with successful crowdfunding for the project, you first need to decide on the appropriate crowdfunding platforms where your fintech project has a better scope of success. You need to develop a marketing plan based on the target platform. Remember, every platform requires different marketing skills and strategies to make your project resonate among the target audience.

Let’s quickly look at some of the top crowdfunding platforms for fintech startups.

• Kickstarter: This widely popular platform that has raised funds for hundreds of successful tech solutions that we use today allows projects to run reward-based campaigns to generate funds and takes just 5% of the total funds raised from the platform. 
• Indiegogo: This globally popular crowdfunding platform allows tech startups to raise funds for their projects by running reward-based campaigns. It is the most popular platform for crowdfunding tech startups, along with Kickstarter. 
• SeedInvest: This platform allows tech projects to meet investors over the Internet, and you can get access to venture capitalists, angel investors, and others through this platform. 
• SyndicateRoom: This UK-based platform allows any tech startup project to reach out to thousands of angel investors and small investors and get their required funds. It is equally a crowdfunding platform and a place to reach out to angel investors.

Wrapping Up

So, we have a near-comprehensive idea of generating funds for fintech startups of all niches and sizes. If you have an ambitious startup to deliver unique financial solutions using technologies, investors today or tomorrow will take an interest in your project. All the above platforms and methods speed up this process of getting funds.