VCs aren’t done betting on fintech

Fintech was in landfills for some time, and with companies like Brex once again cutting staff while trying to contain costsyou’d be forgiven for assuming that the market for financial technology products is struggling.

Well, not really.

Brex may not be having a good few quarters, but there is enough positive news from the world of fintech to offset all the negativity surrounding the sector. Bilt Rewards’ a new massive round is a good example of the other side of the coin: a rewards-focused startup just raised nine figures with a significantly higher unicorn valuation.

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In second place, BNPL giant Klarna was busy remodeling his business for higher profits and continuous growth. So yes, while there has been a huge lack of fintech companies going public recently, capital is flowing into the sector as venture capitalists are still cautiously optimistic about it.

So which startups are getting the most praise from investors? Today, we can answer that question relatively easily thanks to a new list compiled by GGV US which highlights 50 fintech startups that venture capitalists consider hot. We also spoke to GGV’s managing partner, Hans Tung, about what he sees in the sector today.

We’ll get into the sub-sectors shortly, but if you want to cut to the chase: lending, treasury management and CFO are pieces of the fintech puzzle worth exploring.

The problem with (2021) fintech

Before we dig into the good news, let’s talk about the stories. Why does fintech seem stuck in first gear today? A good deal of the current anxiety probably stems from the streak generally strong startups that raised too much at very high valuations a few years ago. Those massive fundraises often led to over-employment and capital costs that are out of step with today’s standards.

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