- March 12, 2019
- Posted by: admin
- Category: Uncategorized
Anyone who is looking at the future and is combining technology in an innovative manner has an edge over other companies.
Fintech Startups-Angel Investment is the lifeblood for any startup. This is the first step which helps them to scale up towards the growth with external validation of their execution and begin to head towards achieving the growth.
The fintech industry comes with a unique set of challenges for startups, as the market is complex.
So far, the finance market has been largely closed to external innovations. Thus, for incumbents to break in the system, the startup needs to find a great distribution strategy to win the market. Considering the battle between B2B vs B2C, I am likely to believe that the former will have an edge with limited funds.
Can the startup quickly get some strategic partnerships or entities, that have customers, join hands with them? The large players in industry thus far probably are like elephants in the room–strong and holds the game closely.
Can the incumbents be agile cheetahs who can help the elephants with their agility and speed to win?
These are some questions that decide the fate of the startup in this space.
Secondly, given the nature of the industry, the startup also needs to ensure that basic compliances are in place. Compliance is necessary for growth, and defining growth is essential for investment.
The ease of integrations with the existing ecosystem as well as the regulatory framework is essential. This ease also defines how quickly the startup can scale up.
The fundamental aspect to grow and scale would depend on how quickly the startup integrates with the ecosystem and existing framework. The harder the integration, slower will be growth and adoption. The finance sector has been very closely regulated thus far for obvious reasons and any disruptions which align with regulatory framework have higher chances of scoring a home run.
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Article Credit: MoneyControl
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