TechCrunch+ interviewed six active investors to understand the current thinking in fintech investment. The investors highlighted the importance of AI in fintech, but also the need for careful evaluation of its role in a company's operations. They also discussed the trend of startups focusing on niche segments of the population, predicting more down rounds in 2023, and shared their excitement and concerns about the fintech space. The investors emphasized the importance of a clear and focused pitch from startups seeking investment.
Key takeaways:
- Fintech startups are facing a tougher funding environment in 2023, with global funding hitting a six-year low in Q2 2023, according to CB Insights.
- Valuations of fintech firms have also dropped significantly, with investors taking more time to evaluate deals than during the funding boom.
- Artificial Intelligence (AI) is a hot topic in the fintech space, with many companies incorporating it into their offerings to stand out and increase efficiency.
- Six active investors in the fintech space shared their thoughts and advice, warning against blindly investing in AI and predicting more down rounds in 2023.