Building the next fintech unicorn

Navigating Fintech’s Future: Investment, Innovation, and Resilience

The discussion, moderated by Elizabeth MacBride, commenced by addressing the recent two-year slowdown in fintech funding. The panel explored whether this trend indicated a growing appetite for technology or a fundamental shift in investment strategies. The consensus pointed towards a move away from speculative “bubble” investments towards more grounded, problem-solving ventures.

Panelists emphasized that current investments are increasingly driven by “real numbers,” focusing on tangible solutions. The importance of clear narratives within the community was highlighted, stressing the need to deliver value across diverse sectors. Sustainable revenue generation was identified as a crucial factor for companies at all stages of development.

Peter De Caluwe, Deputy Chairman at Thunes, discussed the enduring nature of cross-border payments and traditional banking systems like SWIFT. He noted that contemporary technology introduces novel capabilities and strategic advantages, transforming how these long-established financial mechanisms operate and evolve in the modern era.

The conversation underscored the significance of capital resources and how entrepreneurs can effectively secure funding. Mr. De Caluwe highlighted that new investments are vital for driving value within companies and the broader market. Entrepreneurs were advised to seek investments that foster strong partnerships and provide valuable insights.

Terry Clune, Founder of CluneTech, shared his experience of successfully raising a 60% up-round during a market downturn. He attributed this achievement to a unique market position and strategic execution, demonstrating that growth is attainable even amidst challenging economic conditions, provided there is a clear vision and strong foundation.

Replicating success in expansive markets demands a combination of mobile-first strategies, effective marketing, experienced leadership, and a cohesive team. The panel stressed the importance of focusing on specific, high-potential markets, such as China and Africa, and investing in areas where one possesses deep understanding and can add substantial value.

Mr. De Caluwe further elaborated on the slow adoption rate of new technologies within traditional banks, often requiring three to five years for implementation. He expressed enthusiasm for “open business” models, which streamline direct fund transfers to customers, thereby revolutionizing customer-centric businesses and expanding market reach significantly.

The panel emphasized the necessity of a robust foundation and strategic focus, particularly for cross-border operations in large economies like China and Zimbabwe. They advocated for prioritizing services in specific regions rather than attempting to cater to all markets, ensuring efficient resource allocation and deeper market penetration.

Elizabeth MacBride highlighted that difficult periods often precede significant breakthroughs, underscoring the importance of resilience. She stressed the critical role of strong internal communication in maintaining alignment among teams, partners, and investors, especially when navigating market volatility and unexpected challenges.

Peter De Caluwe shared personal insights, identifying unexpected payment taxes as a significant challenge and the pursuit of market leadership as a primary motivator. The panel celebrated the strength derived from diverse teams, noting a group of companies comprising 65 nationalities, which fosters global collaboration and varied perspectives for innovation and growth.

Despite the inherent difficulties, particularly those encountered during the COVID-19 pandemic, the panelists maintained a positive outlook. They highlighted continuous adaptation and growth, emphasizing that while the entrepreneurial journey is demanding, the collective effort of a dedicated and diverse team enables companies to overcome obstacles and thrive in the dynamic fintech landscape.