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Hi, fintech fam! 💜

We are only three days away from the inaugural Fintech Is Femme Leadership Summit, and I am incredibly excited!

This event is the realization of a seven-year-old idea, and I want to express my sincere gratitude for all the support.

Thank you for purchasing tickets and enduring my numerous emails to help spread the word. I assure you, it will be worth it!

The day is carefully designed to provide you with valuable insights, networking opportunities, learning experiences, and a sense of community.

Ultimately, you will leave with a wealth of knowledge and new connections that will empower you to thrive in your fintech journey, regardless of your current position.

We are less than 30 tickets from reaching our goal of 300 attendees, so please help us spread the word and invite a friend to make the event even more meaningful! You can grab your ticket here.

Now, let's dive into the latest news!

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#TRENDING

What’s Up In Fintech

Every Thursday, I share news stories and trending pieces I follow. Think of it as a way to quickly find the most important news in the fintech world.

#1 State of Fintech Funding in 2024

This year’s fintech funding reached $7.3 billion globally across 904 deals, as reported by CB Insights’ Q1 2024 State of Venture Report.

The figure represents a decrease of 54.4% compared to the same period last year, marking the lowest funding level seen since early 2017. Compared to Q4, the first quarter of the year saw a 15% increase.

United States-based companies raised $3.3 billion across 393 deals in the quarter. Europe closely followed, with startups raising $2.2 billion across 203 deals for the same period. This year's funding is significantly smaller than Q1 of 2022, during which $32.9 billion was raised.

However, it's essential to consider the prevailing circumstances over the past few years before assessing the fintech market's health broadly.

Why It Matters

To be fair, funding dollars are not the only indicators of our industry’s health. While a notable figure, it’s worth exploring why we’re seeing a slowdown due to what’s been happening around us.

Increasing interest rates, inflation, and regulatory pressures, especially in the cryptocurrency industry, have posed challenges for fintech startups in their quest for capital. Additionally, the past year witnessed several notable failures among crypto companies and banks, further fueling investor apprehensions.

These challenges led to skepticism about the future of fintechs, especially among under-capitalized startups, signaling an imminent market shakeout where only the strongest contenders would survive.

Key issues contributing to this included capital drain, regulatory hurdles, market saturation, data security concerns, customer acquisition challenges, profitability uncertainties, staffing shortages, execution flaws, and pandemic-related disruptions.

Despite these challenges, I’m seeing these numbers with optimism.

Many fintechs, including neobanks, payment platforms, digital wallets, and others, are standing strong, and even sectors that are hit harder, like wealth management, exhibit resilience. For instance, Ellevest, a fintech platform focusing on investing and wealth management for women, has demonstrated growth with $2 billion in assets under management.

This year, the fintech landscape continues adjusting to higher interest rates, inflation, and increased investor scrutiny.

This shift emphasizes the importance of:

• Solid fundamentals,

• meaningful differentiation,

• identifiable market segments,

• and realistic paths to profitability for fintech companies.

Amidst these changes, fintechs are innovating by pivoting to enterprise services, incorporating generative AI capabilities, or forging partnerships with established financial institutions. Even struggling fintechs find new opportunities through acquisition or integration within larger entities.

So, ultimately, while fintech funding has experienced a downturn in recent years, it’s not the only indicator of success.

There are plenty of companies built on strong foundations that continue to thrive.

Individuals and businesses with captivating personal and product narratives and sustainable business models will continue to scale.

This offers a positive outlook for the fintech sector in 2024 and beyond.

#2 Study Breaks Down Demographics of Unicorn Founders

A new study is looking at the “DNA” of unicorn founders—aka founders who have built a company worth over a billion dollars—and the findings are noteworthy but unsurprising. 

The study, called Unicorn Founder DNA Report by Defiance Capital (I saw the data in TechCrunch), analyzes 845 unicorns and 2,018 unicorn founders, concentrating on the U.S. and U.K. from 2013 to 2023 to define the common traits of these kinds of founders.

Why It Matters

The study reveals that 70% of unicorn founders hail from immigrant, female, or people of color backgrounds. The presence of female unicorn founders rose to 17% in 2023, showcasing progress from the previously nonexistent figures. 

However, the predominant archetype among unicorn founders appears to be male immigrants with STEM backgrounds—a profile favored by the top 20 U.S. VC funds, according to the study. 

This pattern highlights the persistent disinterest in supporting diverse founders through VC funding, even when compared to the conventional image of founders, who are primarily white, male, local, and Ivy League-educated, and only make up 11% of unicorn founders.

Despite the evident financial potential, top VC firms choose to overlook female founders, a demographic that is gaining significant traction in the unicorn realm. This underscores a significant disparity in VC funding, with only 21% of immigrant and female founders securing investments from the top 10 VCs.

By intentionally investing in these diverse founders, we can unlock a wealth of untapped potential and reshape the trajectory of high-growth startups.

However, the consistent role that VC funding plays in stifling innovation is shown in the demographics of unicorn founders. The representation of Black founders remains notably ridiculous at just 3%, whereas 82% of unicorns include one white founder. 

Interestingly, the study also delves into the personal narratives of unicorn founders, revealing a common thread of adversity and resilience.

Many founders developed a growth mindset from an early age, driven by experiences of unfair treatment or limitations in their native environments.

These traits are particularly evident among marginalized communities, including women, people of color, and individuals with atypical backgrounds.

Unicorn founders often embody the qualities of trailblazers, motivated by a deep sense of purpose. They are backed by strong family influences, robust peer networks, and a fearless attitude towards failure, all driven by a desire to challenge the status quo.

Their stories of resilience and determination are not only inspiring but also a testament to the potential for success in the face of adversity. 

Additional insights from the study highlight differences in unicorn founding dynamics. Solo founders typically launch their ventures three years later than founder teams. On average, it takes seven years for founder teams to achieve unicorn status, with second-generation immigrants achieving this milestone a year earlier.

In essence, the study unveils the demographics of unicorn founders and provides a compelling narrative of resilience and ambition driving entrepreneurial success, shedding light on the evolving landscape of high-growth startups.

Yet, the diversity statistics remain disheartening, and it is crucial that we purposefully channel VC investments towards diversity.

If we alter the course of the type of founders who create unicorns, we might be able to prevent our economy from faltering every few years.

I wrote this article featured in Rise, created by Barclays, to provide some action items.

#3 Meet the Fintech Exec Leading Public Policy Discussions for the G20 

This week, I learned about the work of Paula Bellizia, President of Global Payments at EBANX, who spearheads initiatives aimed at fostering diversity and gender equality within the corporate landscape. 

As the Chair of the B20 Women, Diversity, and Inclusion in Business Action Council, Bellizia leads a collective endeavor to advocate for greater representation and inclusivity, particularly focusing on women's empowerment.

She is also a global fintech leader, using the Action Council to formulate actionable recommendations for gender equality policies slated for presentation at the G20 Summit in November.

The G20 Summit gathers many of the world's largest economies and is the premier global forum for discussing economic issues. Since January, representatives from the private sector of G20 countries have been gathering to discuss policy proposals to be presented to the group's leaders at the November Summit.

Bellizia, a prominent voice in these discussions, emphasizes the transformative power of diversity, citing it as a social imperative and a strategic advantage crucial for business success. 

This sentiment aligns with findings from extensive research, which underscores the positive correlation between diverse leadership teams and superior financial performance.

Why It Matters

Bellizia, leading a global payments company, underscores the broader economic impact of gender equality, referencing a World Bank study indicating a potential 20% increase in global GDP with the closure of the gender gap. 

In her engagements within the B20, Bellizia extends the discourse on equality to the realm of technological advancement, highlighting the indispensable role of diversity in driving innovation. 

While the company she leads, EBANX sets an example with 40% female representation among its leadership, Bellizia acknowledges the ongoing imperative for progress both internally and externally. 

The company actively implements diversity initiatives such as mentorship programs, empowerment circles, and targeted educational efforts for underrepresented groups. Bellizia calls upon other fintech leaders to take decisive action in fulfilling their social responsibility to create a fairer and more inclusive society.

With an unwavering dedication to enacting measurable change, Bellizia expresses confidence in achieving global economic and social inclusion for women, and frankly, we need that type of confidence and action to move the needle. 

As fintech looks to solidify its role as a key player in global finance, embracing diverse perspectives and creating real policies around doing so becomes essential for driving innovation and tailoring products and services to meet the diverse needs of a growing global clientele.

_{MARK YOUR CALENDARS}

Join us every Thursday to stay updated on the top fintech events each week! These events are a great way to network, learn, and connect with our fintech community. Let's fill our calendars with these awesome events - I would love to see you there! If you have an event to share, please inform me!

_{MONDAY 4/8}

[NYC] FINTECH IS FEMME LEADERSHIP SUMMIT: ​It's a summit you've never seen before.

Hear from the fintech industry's most impactful and inspirational leaders, experience curated networking opportunities, and define the next phase of your career in fintech.

​After high-impact networking sessions, panels, fireside chats, and performance coaching opportunities, we'll close the evening with our unforgettable Evening of Storytelling.

_{WEDNESDAY 4/10}

[NYC] EMPIRE STARTUPS FINTECH CONFERENCE: After you are rested and recovered from NY Fintech Week kick off, be sure to catch your girl (and a whole lot of other titans of NY Fintech) on Empire Startup’s premier event!

I’ll open the show with a session on why New York is the fintech capital with Amy Nauiokas of Anthemis, Stephany Kirkpatrick of Orum, Tommy Nichols of Alloy, and Johnny Ayers of Socure.

_{THURSDAY 4/11}

[VIRTUAL] INVESTING IN FEMALE-LED COMPANIES: Women are solving billion-dollar problems and leveraging innovative tech to usher in more equitable healthcare, education, and financial systems. Join my friend Lisa Carmen Wang and the BAD BITCH EMPIRE Fund presentation to learn about how you can invest with a powerful network of women in the next billion-dollar female-led frontier tech businesses. Save your seat here.

_FINTUNES

🎵 Beyoncé - YA YA

One standout gem on Cowboy Carter that never fails to captivate me is “YA YA” a personal favorite of mine. The sheer uniqueness of this track, coupled with its profoundly relatable lyrics, never fails to compel me to rise from my seat and dance. Kudos to the incomparable Beyoncé for yet another awe-inspiring masterpiece.

That’s all for now! Stay safe, everyone. Hug your loved ones. See you Sunday (and IRL on Monday)!

Love,

Nicole

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