Daily Fintech Newsletter | Feb. 28th
Hi!
In case you missed it, please see below today's most relevant fintech news.
FinTech Nations is an initiative in which the Ministry of Foreign Affairs of Israel together with global fintech partners, start-ups, scaleups and established companies from Israel, Hong Kong, Singapore, U.K., UAE, Denmark, Australia, Netherlands, U.S. and other Fintech leaders around the world will join forces to produce innovative solutions. Link here.
San Francisco-based Affirm, Inc. Holdings Inc said that it is planning to launch its first payment card allowing users to pay for some purchases in installments, as the buy now, pay later (BNPL) sector booms. Link here.
ImaliPay, an African-based FinTech start-up is making waves by reshaping the future of work in the gig economy. Link here.
The power of network effects: Cash App disclosed customer acquisition costs of <$5, down from $20 in 2019 (Amrita Ahuja). With scale, CAC seems to go down, not up, contrary to many other FinTech companies. No more efficient customer acq. method than network-driven P2P payments. Link here.
A serious sticking point in any term sheet negotiation is the pre-money valuation. At first glance, it might appear that VCs and founders have entirely opposing goals. Entrepreneurs want the highest possible valuation, to maximize the capital raised and minimize the dilution of the founders’ equity. Investors want to buy the largest possible stake at the lowest possible price. Link here.
Despite the Covid-19 pandemic, 2020 was a record year for VC investment across major European cities, with a strong fourth quarter making up for a slow start to the year. Link here.
Payment technology platform, Promise, has announced over $20 Million in new Series A funding to bring antiquated government payment systems into the 21st century. Link here.
Former Mastercard Europe president Javier Perez has invested €4 million in Danish subscription terminator startup Subaio. Link here.
Mastercard’s signature science, technology, engineering, and mathematics (STEM) program, Girls4Tech, has officially reached its initial goal of educating one million girls worldwide. Link here.
Entrepreneurs and investors have different expectations at each stage, so it is important to know where angels fit. It is also important to know what your individual angel and risk profile is, as being an angel doesn’t necessarily mean you should be investing in a particular round. The better you know yourself, the easier it will be to aim at a specific group of startups fundraising in the rounds that best suit you. Read more here.
Sign up for my FinTech Angel Investors Syndicate here.
This ends my Daily Fintech Newsletter. Let me know if there are any questions or news/insights worth mentioning in the next newsletter. Until the next!
Regards,
Marcel van Oost
marcelvanoost.com
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