Is fintech a good investment for venture capitalists to be interested in?

Is fintech a good investment for venture capitalists to be interested in?

Venture capitalists are private equity investors that invest in potential companies in the early stage in exchange for equity stakes.

Technology is always the field that they are interested in because of its potential for future development. Many startups in this field have been reaping many successes and achieving many outstanding achievements (becoming the unicorn of the region) with billions of dollars in valuation.

Does the fintech industry meet the standards of venture capitalists that they can trust and invest in? Let’s find out the answer in this essay.

First of all, venture capitalists are people who value ideas.

Venture Capitalists often invest in startups from the very beginning. Venture Capitalists are people who are very focused on the idea of ​​startups because, in the early stages of startups, there is nothing to prove themselves other than the idea and the niche they are targeting.

They are often concerned about whether the startup's idea is likely to be accepted by the market and likely to run a long way.

Some ideas sound quite good, but when they start to implement, they will encounter some small problems in operation and venture capitalists will be mentors to support them throughout the process of building their startups in a more positive direction.

The tip here comes from your ideas and market research, your fintech service must be well received by users before it is presented to venture capitalists for review.

Second, venture capitalists are people who value your honesty when they come to your business.

In the early stages of a startup, sometimes startups face all kinds of problems in operation as well as inefficient use of capital, let's be honest with venture capitalists because they have a professional appraisal team, and you will never lie to them in financial as well as operational matters.

A negative impression can be created by purposefully misrepresenting your financial statements or internal problems, and venture capitalists are frequently connected, which could be harmful to you in the long term.

The tip here is that financial statements with losses should also not be false and honest with venture capitalists about everything.

The tip here comes from your ideas and market research, your fintech service must be well received by users before it is presented to venture capitalists for review.

Lastly, if venture capitalists are those who are willing to be your mentors for a long time, give them a reasonable number of shares.

As in the article Shark Tank Vietnam – will sharks be mentors or just wait for the divestment date after seed funding? FinFan mentioned the investment taste of the sharks along with the vision of the sharks with startups.

The key issue for startups is finding venture capitalists who can mentor them during the difficult years of the early stages of their business development.

So, startups don't hesitate to give preference shares to such mentors because what they bring to you is not only money but also a commitment to accompany your business until your business can stand on its own.

As in the show Shark Tank, Shark Dzung is the perfect choice for startups because everything he does is aimed at the startup, he has invested in even though it is in the most difficult period.

Therefore, in deals with Shark Dzung, if he needs a sufficient percentage to be able to contribute an opinion (over 35%), please respect and share that percentage by what you get behind will be lessons learned and effective support from this Shark.

The trick to this is to cherish and share with the venture capitalists who care about your intentions and give them a share worth of what they can bring you along the way to build your fintech business.

In short, venture capitalists are very interested in fintech and rate it as a good investment. It’s the startup's job to prove to them the potential in your market, be honest with them about all the problems of the company. know how to share equity stakes with worthy venture capitalists.