This topic contains: Top 5 Fintech incubators
In 2018, global Fintech investment reached $111.8 billion, a rise of 120 percent over 2017. That’s good news for startups, but not all of the picture is rosy. Without a doubt, the high growth potential of non-traditional financial service firms is high. At a rate much higher than startups in other industries, they often crash and burn. A helping hand is what newcomers need in this volatile industry.
The thought of many financial institutions has changed, and they are now looking to team up more with these emerging fintech technology companies to gain access to new markets and goods, to maximize efficiencies, or just the “secret recipe” that drives innovation. At the same time, many Fintech has attended to enter major financial institutions themselves to grow into markets, benefit industry.
Fintech Incubators V/S Accelerators
If you have what it takes to meet the right criteria, Fintech incubators and accelerators are there to assist. Incubators provide seed capital to emerging players, help to build a business model, provide ties with experience in development, and sometimes a place to work. Accelerators are looking for new enterprises that are farther along in the process.
Top Fintech incubators
1. Y Combinator
With a modest seed capital of $150K, Y Combinator targets early-stage start-ups twice a year. Their mission is to help innovators mature their products to the level that would interest larger investors.
Y Combinator gets a 7 percent stake in the start-ups they finance in exchange for seed money. This incubator has helped to see the light of day for more than 1,900 businesses.
2. Plug and Play
A 12-week accelerator program is run by Plug and Play Fintech twice a year. The objective is to connect early-growth Fintechs to the largest financial institutions in the world. The in-house venture funding team invests every year in over 260 startups. Checks can vary from 25,000 to 500,000 dollars. They have their offices located in cities like Paris, NYC, Abu Dhabi, Tokyo, Frankfurt, Singapore, and China.
3. Start Tank
To fund startups in India, Start Tank was launched by PayPal in 2013. The incubator provides start-ups with an obligation-free atmosphere in which to expand at its exclusive facility. It offers technology, business mentorship, and infrastructure support for incubated startups, networking opportunities, investors, and customers. The incubator helps start-ups in Fintech and the payment sector, as PayPal aims to turn money and has become a regular part of the financial life of people.
4. Oracle Startup Cloud Accelerator
While Oracle Startup Cloud Accelerator has recently been launched, in India it has become very popular. It incubates 5–6 early-stage start-ups in technology, helping them to grow their creative solutions. Its program offers access to co-working space for fintech start-ups, partners and investors, Oracle customers, and free Oracle Cloud platform credits.
5. Microsoft Ventures
An early-to-middle-stage incubator, Microsoft Ventures focuses on subjects such as mobile apps, cloud services, the Internet of Things, urban computing, big data, and wearable technology. Startups gain access to experts in technical and design, business mentorship, tools to help entrepreneurs develop their company rapidly, and office space to grow their company.
Financial technology (Fintech) is used to characterize emerging technology that aims to enhance and simplify the distribution and use of financial products. At its heart, Fintech has been used to help businesses, company owners, and customers efficiently control their financial activities, procedures, and lives by using advanced techniques and software used on devices and progressively on devices.
As Fintech appeared in the 21st century, the term originally referred to the technologies used in the back-end processes of financial institutions. Since then, though, there’s been a shift towards more customer offerings and a more shareholder concept. Fintech currently covers several markets and businesses, such as schooling, wealth management, investment, and non-profit, and corporate finance.