The Impact of COVID-19 for Fintech Investments
Knowing where to find the right investors has become more important than ever. Since the outbreak of the coronavirus pandemic, the global economy has been thrown into disarray. In Q1’20 there was a noticeable impact to fintech investments, especially at the seed stage, from Venture Capitalists, Angel Investors and Private Equity.
CBInsights’ Q1 Fintech Report stated that “Q1’20 was one of the worst quarters in 2 years for VC-backed fintech.”
However, as we moved into Q2’20 we saw that fintech funding rebounded:
Despite this rebound, however, deal activity continues to fall. It’s worth noting that this decline began “pre-pandemic in Q4’19, potentially indicating the presence of other headwinds in addition to Covid-19.” CBInsights observed.
You can access the full report here; I’ll keep this section updated with new information as reports on Q3’20 come to light.
The List of Most Active 150 Fintech Investors
The list, comprising of Venture Capital Firms, Angel Investors & Private Equity Firms, contains:
- Investor type
- Investment stage
- Founding year
- No. of Exits
- No. of Investments
- Link on Crunchbase
- Fintech portfolio
Sure, you know, nothing replaces personal intros from people that can vouch for you. So take your time doing due diligence on potential connections of associates and partners at the best fintech investment firms. Then ask the strongest connector for the introduction.
Quick tip: look at your 1st or 2nd connections on Linkedin and ask for intros to firms that list specialized investors in Fintech. And remember: best introductions come from people who have brought them good deals in the past.
Otherwise, feel free to contact them directly using our list of the most active 150 investors in fintech. Full disclosure: as you can understand we cannot share personal contacts, so the list has general contacts only.
Also bear in mind that, according to a DocSend survey, you need to contact an average of just 58 investors, make 40 meetings, and take just 12.5 weeks to close your funding round, so get ready for some work ahead of you.
Related: Raising Capital For A Startup: First Steps To a Great Deal
With that being said access the list here: > 150 Angel Investors, VCs and Private Equity Funds.
Hopefully, this might save you time in the cumbersome process of browsing the net to figure out who can be a good source of funding for your prominent venture in the Finance sector.
Fintech Investors: Geographical Presence
In the Global Picture and as expected, most of the Institutional Investors are based in US and UK. However, the EMEA Region (Europe, Middle East and North Africa), Germany, Switzerland and Sweden are worth mentioning, with 5%, 3%, 3% of the Fintech Institutional Investors respectively.
In the APAC Region (Asia Pacific), Singapore stands up with 4.5% of Fintech Investors.
Fintech Investors: Stage Focus
The majority of the Fintech Institutional Investors covers both the Early and Late Stage investment rounds (68%).
Performance (in terms of n. Exits over n. of total Investments)
This statistic, for obvious reasons, has been performed on UK and US Fintech Institutional Investors only.
Good performances have been achieved in both of the Countries, with US standing one step ahead compared to the UK.
Here below you have a breakdown of the Fintech Investors with their statistical position in terms of performance.
There are many challenges when it comes to startup funding. Although the situation has been made worse by the recent pandemic, the same “rule” still applies — persistence is the key to success.
Target investors most suited to your business needs, be proactive when communicating with potential investors and look out for the hidden details when funding your startup.
Finally, when using this comprehensive list of active fintech investors, research their networks. Try to find a mutual connection who can help you get your foot in the door via a warm introduction.
Good luck and thanks for reading!