QED Investors, one of the most prolific and successful Fintech VCs, distributed an email last week commenting on the Fintech marketplace. QED said that “while the past several years have been a whirlwind for Fintech, we are in chapter 2, not chapter 8. We are confident there is so much more to come.”
During the COVID health crisis, many sectors of Fintech have boomed due to social standing and work from home (WFH) trends. Even while VC investments have pumped the breaks, reports on Fintech investment remain healthy. QED describes Fintech as a “power for good throughout the world.” Sophisticated services, once accessible only to the affluent, are now making their way to the masses.
A report from last month distributed by Innovate Finance indicated that during the first 6 months of 2022, UK Fintech saw Fintech investment of $9.1 billion representing a 24% increase versus the year prior. While a robust first half does not guarantee of solid next 6 months, clearly, innovation in financial services is continuing. And as QED states, Fintech is just getting started as entrepreneurs continue to iterate, challenging old models while doing more with less. QED is still “all in on Fintech” even while sharing that “Fintech VC investment has fallen to a six-quarter low in Q2 – perhaps reflecting global markets.
QED also reports that within their 100 portfolio companies they have over 2000 positions opened.