Your success is our goal.
Your success is our goal.
Periodic Bulletin for our Private Equity Partners
Greetings from 99FinTech. Despite current economic headwinds, our assessment of the potential and value of the fintech market remains cautiously optimistic. Thank you to our valued PE partners for your relationship and your fintech referrals, many of which are included in our latest assessment below. Together we are helping many of these high-potential fintechs prepare for major milestones and your attention and potential investment. Their success is our goal.
99FinTech is currently tracking over 30 fintechs in our program (19 highlighted in the graph), from early-stage to later-stage and publicly traded companies. These include vertical specific lenders (e.g. healthcare), B2B and B2C payments providers, a credit card false-positive recovery solution, cybersecurity and fraud providers, tokenization companies and an emerging unique solution for managing, tracking, auditing and reconciling PE fund distributions. They range on the 99FinTech Readiness Assessment (RA) continuum, which measures firm milestone readiness and 99FinTech’s confidence of firm readiness, from slightly above 10:10, to slightly below 90:90 (click here for more information on the RA). Nearly three quarters of these fintechs presently demonstrate medium or higher level of readiness for their next respective major milestone (e.g. launch, capital raise, break even).
We see several distressed fintechs with working, and in some cases patented, technology, presenting opportunities for strategic partners/acquirers or PEs as a bolt-on to portfolio companies. For example:
Many fintechs in our program are overseas firms looking to enter the US. Awareness of US regulatory requirements varies, as does appreciation for if and how business models must change to be competitive and bring value in the US marketplace.
By and large, the crypto firms we are tracking are ancillary to mining and investing.
The market for consumer lenders remains tight and willing to wait to see how the BNPL model evolves. Meanwhile, many stable lenders see this as an opportunity to expand positions in healthcare and seek roll ups.
Many stakeholders seek to grow their share of this market.
...and several firms are jockeying in this space. This may create inefficient stacks for fintechs; meanwhile, many payment processors seek to make these integral capabilities.
As always, we invite you to review and compare the fintechs in our program with your firm’s growth and targeting strategies. If your firm is not already signed up for periodic 1:1 touchpoints with us to evaluate high-potential fintechs, please reach out at PEpartners@99fintech.com.