FMLS:23 panelists emphasized that entrepreneurs need to build solid fintech startups for the long haul.
"Investors are looking for startups with a clear path to profitability, a strong team, and a differentiated value proposition."
The financial services industry is undergoing a period of significant change, and the startup landscape within it is no exception. In a panel discussion at Finance Magnates London Summit (FMLS:23), moderated by Veronica M Glab, the Head of Partnerships & Investment Lead at Innovate Finance, industry experts came together to share their insights on the current funding climate, what they look for in potential investments, and advice for founders navigating this new environment.
A Shifting Landscape
The most immediate change noted by the panelists is the altered funding landscape. Andrew Murray, the Head of Strategic Investments (Services, Markets & Banking) at Citi, stated: "We're seeing a flight to quality." Investors are now prioritizing stability and long-term viability over rapid, unsustainable growth.
In this new environment, investors are placing a premium on strong business fundamentals. As Ingmar Mattus, the Co-Founder at Tickmill Group, put it: "Investors are looking for startups with a clear path to profitability, a strong team, and a differentiated value proposition." This emphasis on substance over hype is a significant shift from the pre-pandemic era, where high-growth potential often trumped other considerations.
Christian Frahm, the Founder & CEO at United Fintech, emphasized the critical importance of customer focus: "Founders need to be laser-focused on solving a real problem for their customers. It's all about understanding their needs and providing a solution that delivers tangible value." This customer-centric approach is essential for building sustainable businesses that can weather the ups and downs of the market.
In a market where caution reigns, founders are advised to steer clear of overhyped promises and unrealistic claims. As Mattso cautioned: "Don't overhype your product or service. Investors can see through empty promises, and they'll be looking for startups with a grounded understanding of their own strengths and limitations."
Guy Hopkins, the Founder & CEO at FairXchange, said: “We are fortunate to have an investor, United Fintech, and that we are able to focus on engineering and growth without worrying about funding.”
Building for the Long Haul
Finally, the panelists reminded everyone that building a successful startup takes time and effort. Fram offered this sobering advice: "Focus on the customer and get to the market as quickly as possible, but remember, this is a marathon, not a sprint. Be prepared for the long haul, and don't expect to get rich quick."
In conclusion, the current funding landscape presents both challenges and opportunities for startups in the financial services space. By focusing on strong fundamentals, prioritizing customer needs, avoiding hype, and embracing a long-term perspective, founders can increase their chances of success in this evolving market. The insights shared by the panelists in this discussion provide valuable guidance for company executives looking to invest in or support the next generation of financial services startups.
The financial services industry is undergoing a period of significant change, and the startup landscape within it is no exception. In a panel discussion at Finance Magnates London Summit (FMLS:23), moderated by Veronica M Glab, the Head of Partnerships & Investment Lead at Innovate Finance, industry experts came together to share their insights on the current funding climate, what they look for in potential investments, and advice for founders navigating this new environment.
A Shifting Landscape
The most immediate change noted by the panelists is the altered funding landscape. Andrew Murray, the Head of Strategic Investments (Services, Markets & Banking) at Citi, stated: "We're seeing a flight to quality." Investors are now prioritizing stability and long-term viability over rapid, unsustainable growth.
In this new environment, investors are placing a premium on strong business fundamentals. As Ingmar Mattus, the Co-Founder at Tickmill Group, put it: "Investors are looking for startups with a clear path to profitability, a strong team, and a differentiated value proposition." This emphasis on substance over hype is a significant shift from the pre-pandemic era, where high-growth potential often trumped other considerations.
Christian Frahm, the Founder & CEO at United Fintech, emphasized the critical importance of customer focus: "Founders need to be laser-focused on solving a real problem for their customers. It's all about understanding their needs and providing a solution that delivers tangible value." This customer-centric approach is essential for building sustainable businesses that can weather the ups and downs of the market.
In a market where caution reigns, founders are advised to steer clear of overhyped promises and unrealistic claims. As Mattso cautioned: "Don't overhype your product or service. Investors can see through empty promises, and they'll be looking for startups with a grounded understanding of their own strengths and limitations."
Guy Hopkins, the Founder & CEO at FairXchange, said: “We are fortunate to have an investor, United Fintech, and that we are able to focus on engineering and growth without worrying about funding.”
Building for the Long Haul
Finally, the panelists reminded everyone that building a successful startup takes time and effort. Fram offered this sobering advice: "Focus on the customer and get to the market as quickly as possible, but remember, this is a marathon, not a sprint. Be prepared for the long haul, and don't expect to get rich quick."
In conclusion, the current funding landscape presents both challenges and opportunities for startups in the financial services space. By focusing on strong fundamentals, prioritizing customer needs, avoiding hype, and embracing a long-term perspective, founders can increase their chances of success in this evolving market. The insights shared by the panelists in this discussion provide valuable guidance for company executives looking to invest in or support the next generation of financial services startups.
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
FMAS:24– Industry Insight: Business Growth in Africa and Beyond
Hannelé De Necker, CEO, IFX Brokers | FMAS:24
Hannelé De Necker, CEO, IFX Brokers | FMAS:24
1 week to go until FMAS:24 kicks off and we couldn't skip our interviews with some of this year's sponsors 🤩 Starting off strong with Hannelé De Necker, CEO OF IFX Brokers.
See you there!
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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1 week to go until FMAS:24 kicks off and we couldn't skip our interviews with some of this year's sponsors 🤩 Starting off strong with Hannelé De Necker, CEO OF IFX Brokers.
See you there!
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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FMAS:24 | Sneak Peak
FMAS:24 | Sneak Peak
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa