As a fintech market gradually recovers from the 2022 turmoil, funding is expected to increase. Additionally, projects peg the fintech industry to reach $1.5 trillion by 2030, so market saturation will continue to grow, leading to increased competition for investors’ attention.
In a climate where many companies are struggling to establish themselves amid limited funding opportunities, completing even a Series A round is a powerful symbol of your fintech project’s promise.
As the founder of a global B2B payment infrastructure company that raised capital in different market periods and successfully weathered the challenges of the past year, I want to share some of the techniques that have helped us in our efforts to secure funding and stay afloat.
To succeed, you need to present a reason to buy it
Preliminary research should be as thorough as possible. You need to understand exactly how the products you are creating, what niche market you are trying to fill, who your key customers are and how to reach them. When you have a tangible understanding of product-market fit, you can define what differentiates you from competitors and what value the product offers to potential investors.
Transparency is critical when preparing for fundraising — investors should be able to have immediate access to all relevant information about your business.
Not only that, but you also need to demonstrate logical traction, with clear indicators of the startup’s growth to date and how securing new funding will affect its growth in the future. Growth trends should show that revenue generation is increasing at least twice a year. Make a specific request when attempting to raise funds through a round. The amount and goals should be clear to investors. Coherently explain why you need $10 million (for example), how long and how you will achieve results during the indicated period. A concrete plan of action inspires confidence.
Business budgeting is essential. It’s always best to present a growth forecast with a graph that’s growing steadily from quarter to quarter. If the growth line is jagged, this risk can scare off investors, who will likely think your project is too volatile to invest. Make sure the forecasts are accurate and not artificially inflated to look good. Doing anything less would undermine the confidence of your investors.
