The FINTECH Book by Susanne Chishti

Author:Susanne Chishti
Language: eng
Format: epub
ISBN: 9781119218883
Publisher: Wiley
Published: 2016-03-12T00:00:00+00:00

Now let us assume you have found a great FinTech company at an Angel Network Event, met the founders in person, really liked them and their product, discussed their pitch with other FinTech angels who also want to back it in the form of a very complementary angel syndicate (in terms of combined expertise and available networks across financial services and technology), and now you want to take it further. This next phase is called “due diligence”, where it is key to explore the details of the management team, the products/services and traction to date, the market size and opportunities for global expansion, route to market strategies, competitive advantage, and exit options. Due diligence can be done together or one angel can take the lead.

The difficult next step is agreeing on a valuation. Normally FinTech firms will have an idea about their valuation and about how much money they are looking for. This will normally be part of the pitch deck made available to angel investors. However valuations are never set in stone and can be negotiated taking into account:

Competitive metrics, i.e. what are other FinTech firms worth in this vertical at this development stage?

What are the growth and valuation expectations for the company in the future?

How much can you afford to invest taking into account that you want to build up a diversified angel portfolio of companies and what equity stake would you like in return?

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.