How fintech startups are coping with rush renewal rounds

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Like fintech The venture market is leaving, and the venture market itself is leaving. Why? Because fintech investment has historically been about one-fifth of every VC dollar invested — at least in recent years. And after both fintechs are investing and venture capital went a little crazy last yearboth are dealing with a new, more conservative reality.

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For fintech startups, the downturn is real, and many start-ups — we learned during our recent survey of fintech investors – try to avoid de novo rounds that include a new score (no one wants to push the round down!). Therefore, additional rounds are an attractive option for many founders.

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But, as TechCrunch reports, so far renewal rounds are popular today even outside of fintechare often there are more startups chasing the round type than checks. So, to better understand the fintech spin-off market today, we have another set of responses from a group of fintech VCs we examined. Here is the question we asked:

How popular are the extra rounds of challenges? Do you see more companies opting for renewals rather than new rounds compared to, say, 2021 and 2020?

Eight investors responded: Paul Stamas General Atlantic, Alda Leu Dennis initialized capital, Michael Gilroy Kotyu, Justin Overdorf Lightspeed venture partners, Addie Lerner Avid Ventures, David Jagen F-Prime Capital, Nick Milanovich Fintech Foundation, Jay Ganatra Infinity Ventures. (Their answers have been lightly edited for clarity.)

Michael Gilroy, General Partner and Co-Head of Financial Technology, Coatue

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Credit: techcrunch.com /

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