How to Find Top-Quality Start-Up Companies

by fintech herald
Editorial & Advertiser disclosure
The 10 best fintech investors all have something in common. They typically operate within an investor-friendly niche, they are focused on cutting-edge technology, and they have a strong entrepreneurial bent. Some of the best companies, like Yelp, intellect, and Zecco, were founded by early-stage venture capital firms. But one surprising fact also stands out: One Chicago-based digital marketing startup was able to get funding from only five of the top-ranked fintech investors in 2021. That speaks to the challenges that face early-stage venture capitalists. Here are the top five.

One of the most innovative and promising startups on the cutting-edge frontiers of consumer technology investing, Fintemakers was cofounded by entrepreneurs Andy Few and Travis tagging-ton. The business partners quickly started earning profits after forming a partnership with a well-known venture firm. Visions of selling physical and digital consumer products to busy executives were a well-thought-of idea for Many entrepreneurs, but when the store launched, venture funding sources were surprised to see that only 20 percent of the investors were willing to put their money into the business. The digital marketing group later pivoted to offering cloud computing solutions to other cloud-based businesses.

The founders of Zebra Funds, Mike Koenigs and Brad Callen, did not expect to become early-stage investors of a technology company that has since raked in more than $6 billion for its investors. This firm, however, became a darling of vc circles when it launched Zebra Financial, which allows consumers to manage their financial information in a centralized location. Although the business later shifted focus to becoming a mobile commerce company, it made its site and crunchbase page very attractive to customers. It offers an easy to use interface and free trials so you can get a feel for the business. There are also links to its website and Crunchbase page where previous investors can be found.

The next two companies on this list are slightly more advanced in terms of their offerings and service offerings. Braveforex, a forex trading company, offers the option of buying and selling currencies and is backed by Morgan Stanley. Braveforex was among the first fintech investors to utilize a technology called Spread Betting. Its site offers demonstrations on how it works and gives you the options of how you will invest. Braveforex was one of the earliest investments of a number of institutional investors. Its investors include BBVA Bankevi, Credit Suisse, Kerkorian and Wells Fargo.

The final venture on this list is a social media company called Hunch. Like the aforementioned cloud technologies, Hunch focuses on making its website accessible from mobile devices. For fintech investors, Hunch offers options such as trading forex, investing in commodities and equities and even does a little business, too. Its website is very user-friendly and can even be navigated using the tap of a finger.

While these are the top fintech investors currently seeking funding, there are many more out there that haven’t been discovered yet. It’s important to remember though that investors should only choose ventures that are in line with what they are promoting. So-called “startups” without a track record aren’t really going to provide value to future buyers, especially if they have a track record of failure. To find top-quality, early-stage investments for your portfolio, don’t rely on just one or two sources but instead look for a combination of information sources.

These early-stage ventures are in line with today’s regulations, so it will be important to research them thoroughly. In fact, you’ll likely need to consult with a regulatory agency if the venture is considered a start-up. The CFTC provides a frequently updated list of its member banks, their stock prices and other financial details. The SEC has a list of brokerages available to invest in as well that also offer equity. Finally, the VA Loan Modification Program lets qualified veterans access funds through the Federal Housing Administration to buy low-priced and risk capital mortgages.

There are many opportunities for fintech investors. The list presented above provides a snapshot of the types of investments available but there are many more. So if you’re an fintech investor looking to expand your investment portfolio, contact several venture capitalists or private equity firms to find out what opportunities they have available. There is no limit to the money you can invest in the financial world, but being a savvy fintech investor means knowing where to look.

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