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One in every five dollars invested in venture capital was spent on fintech. The global fintech funding activity is back to pre-2021 levels.
Over the last few weeks, high-profile companies like Brex and Chime have made headlines for their layoffs.
fintech startups are still getting started There were more than 200 companies in the summer of 2022.
Entrepreneurs and investors are still placing bets in the field. We reached out to the firm to learn more.
Alex Harris, Drew Glover, and Marcos Fernandez are three of the founding members of the company. They can comment on sector trends from an investor's point of view and also share practical advice.
One of their key recommendations is to lean into customer acquisition channels whose cost is less variable or seasonal than others, but our exchange covered a wide range of topics. You can read on.
The interview has been edited to make it clearer. Many of the companies are portfolio companies of the company.
What makes you think that the tech acquisition funnel is too complex?
Fintech products have a complicated acquisition funnel. In a highly regulated environment, there are some things that are unavoidable, but there are some things that are not.
Friction can be generated even the smallest of details. In the know-your-customer process, many fintechs will ask a customer for their entire social security number. Only the last four digits of the SSN are required for identification in most cases. A five-digit difference can have a significant impact on conversion rates that can save a lot of money.
There is a time and place to collect and personalize data. Personalization and demographic questions can be asked directly in an enroll process. These questions can be asked in a post-enrollment survey or periodically throughout the life of the customer. These questions need to be considered. We often see data collected for the sake of collecting it.