Hi, fintech fam! 💜

Or should I say, howdy! I'm currently in Dallas, spending time with my family.

My nephew just turned five, and we've been having a great time together.

Last night, we stayed up late playing games, and this morning, we played breakfast Jenga using Kit Kats as the blocks. I'm hoping I've earned the title of "cool aunt" by now.

I also want to let you know that this Thursday will be my last newsletter for 2023. I will share a major announcement and slam my laptop shut while I plan for 2024.

I'm excited about all the announcements and changes coming to the platform next year and can't wait to share them with you!

Now, onto fintech!

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FUTURE OF FINTECH

How 'Authentic' Became the Fintech Game-Changer of 2023

How can you work some magic in your fundraising game? 

It's a common question buzzing in my inbox, and you're always eager to know how networking can turn the funding wheels. 

Well, here's the deal – you can absolutely make it happen. 

The key? 

Weaving your authentic personal story into your business solution and boldly pitching it to the right crowd.

So, when fintech powerhouse Sallie Krawcheck, Ellevest's founder and CEO, dropped the bomb that "authentic" was the word of 2023, according to Merriam-Webster, I sensed a golden opportunity to map out your success strategy.

Why? 

Because the word of the year is like a snapshot of our collective consciousness. 

Right now, there's a convergence of trends in the fintech world that savvy women can ride to the funding promised land.

First, we've had a year dominated by Beyonce, Taylor Swift, Barbie, and the rising economic clout of the female dollar, racking up a jaw-dropping $31 trillion. 

Then, cue the secret weapon: a cultural shift in how millennial women dive headfirst into angel investing, as Fast Company brilliantly pointed out.

In the fintech cosmos, after a binge on hypergrowth, we're now in an era where investors are eyeing sustainable, profitable growth. 

VC funding and angel investors? That's the cash flow highway for fintech companies.

So, yes, "authentic" is the word of the year, but it's more than a buzzword. 

It's about women owning their power and shaping the funding landscape for founders and companies in fintech. 

It's the make-or-break force propelling our industry into the future.

Take Sallie herself – a trailblazer who wrangled $53 million in Series B funding for Ellevest in April 2022. 

She took the road less traveled, roping in VC funding from Melinda Gates' Pivotal Ventures and angel investors like Eric Schmidt and Valerie Jarrett, surpassing their $50 million goal.

But let's face it – women in fintech battle institutional barriers regarding snagging capital. 

Sallie's been on the frontlines, fighting for more funding for women-owned businesses and encouraging women to own their financial destinies.

I chatted with Sallie earlier this year to decode the lessons from her Series B hustle.

The recurring theme? 

When you align with people who share your worldview, asking for money becomes a slam dunk. 

Authenticity is your currency; it's how you find your community of backers who resonate with your vision.

For Ellevest, it wasn't just about having a fan club but about women investors rallying behind a common cause. 

They created a special purpose vehicle, a crowdfunding-like uprising, with 90% underrepresented investors – women, people of color, and LGBTQIA+. 

Suddenly, a slog turned into an oversubscription, attracting 360 new investors.

Today, Ellevest stands two-thirds funded by women, a feat rarely seen post-Series B, let alone in fintech. 

Yet, here's the kicker: the "Series B Cliff" haunts many women founders, especially in fintech. 

While women storm the Seed and Series A levels, the numbers plummet by Series B. 

For women in fintech, it shrinks to a measly 1%.

And of those, only 1% manage to clinch Series B in the fintech space.

As a result, the ratio of venture capital raised by women in fintech for Series B is a staggering 1 in 10,000.

But here's the glimmer of hope – if more women join forces and invest, the impact could be seismic.

It's about women embracing their financial clout, investing in startups, and supporting each other.

The road may be long, but the formula is simple: invest, uplift, and amplify.

Angel Investors Step In

Enter angel investing, where successful entrepreneurs put their money where their belief is.

Historically, women barely scratched the surface in this domain – only 13% of U.S. angels were women in 2013.

But times are changing; the proportion of women angels has soared to 37%.

Millennial women are stepping up, driven by a newfound determination and enthusiasm.

Fueled by platforms like TikTok, social media, and popular television shows like Shark Tank, industry and cultural shifts are reshaping perceptions of startups and investing.

Yet, hurdles remain, especially the beliefs of women themselves. 

Growing up in a culture that doesn't encourage money talk for women, it's time to shatter the taboo.

A Fidelity survey reveals that only one-third of women see themselves as investors, and two-thirds crave more information before diving into stocks.

Challenging the misconception that women are risk-averse, I argue that they are actually risk-aware, making them even more formidable as startup investors.

And visibility matters; successful female investors like Amy Nauiokas, Helen Min, and Sasha Pilch are rewriting the narrative.

That's why initiatives like Fintech Is Femme exist – to spotlight women leading the charge.

As more women explore angel investing, assessing its impact on generational wealth and influence will take time.

The main hurdle?

Women doubting their place in this field.

It is now table stakes to embrace authenticity, break the silence surrounding money, and provide mutual support.

Having more women leading the way is essential in a predominantly male-dominated environment.

The resulting positive snowball effect? It is indeed tangible.

So, here's the bottom line: 

Own your authentic self, find your tribe, and let's rewrite the fintech narrative together. 

To kickstart your journey, here’s a list of podcasts featuring female leaders in fintech investing and a resource to connect with VCs and angels in the fintech realm.

Resources:

• How Anthemis is Driving Change in Fintech, With Amy Nauiokas

• Become One of the Best Fintech Investors With Jennifer Lee of Edison Partners

• Solving Fintech’s Biggest Problems With Phenomenal Ventures’ Co-Founder, Helen Min

• How to Get Funding as a Female Founder (Live from Money 20/20)

• This Fintech VCs & Angels list is thanks to Ramp’s resource here.

5 Steps to Building in Fintech, Authentically

Are you prepared to let go of self-doubt and fully embrace your potential as a founder, operator, and innovator? Here's how:

#1 Craft Your Authentic Narrative

Define your personal story and how it aligns with your fintech venture. Your authenticity will be a key asset in attracting the right investors.

#2 Community Building

Identify and engage with a community of like-minded individuals who share your vision for the fintech landscape. 

#3 Embrace Angel Investing

Consider angel investing as a two-way street. Not only seek funding for your venture but also explore opportunities to invest in other female-led startups.

This reciprocity can strengthen the collective impact of women in the industry.

#4 Visibility Matters

Increase your visibility as a successful female founder and investor. Leverage social media platforms, participate in industry events, and contribute to discussions to position yourself as a leader in the fintech space. 

#5 Networking and Collaboration:

Actively network with other women in fintech, both established leaders and emerging entrepreneurs.

Collaborate on initiatives, share experiences, and create a supportive ecosystem that transcends traditional gender barriers.

Remember, the journey to reshape the fintech narrative is a collective effort. 

By taking these tactical steps, you contribute to a more inclusive and supportive ecosystem for women in fintech.

Let’s get ‘em.

_{WTF ELSE?}

• Ex-Binance compliance chief sees lessons from crypto legal woes (featuring our community member Christina Rea!)

• Visa adds real-time money movement to FinTech Fast Track

• How might credit card fee increases impact open banking?

• $340M Series C funding elevates Tamara to unicorn status

_{I WANT IT, I GOT IT}

• 📚 Today’s Read: 7 ways to make your family holiday gatherings free from gaslighting by The Washington Post.

• 👀 Today’s Watch: Every year for Christmas, my fiancé takes me to a Broadway show as my gift (I’m more of an ‘experience gal’ than a ‘material girl’). This year, we saw Hadestown. It tells a version of the ancient Greek myth of Orpheus and Eurydice in the setting of an industrial version of the Greek underworld. It was one of the best shows I’ve ever seen, and I’m still listening to the soundtrack today.

• 🍣 Today’s Eats: Before leaving NYC for TX, I had a sibling dinner with my New York family where we ate at Gugu Room, a delicious fusion of Filipino and Japanese cuisine. Save this one for your next family meal outing.

_FINTUNES

🎵 Hadestown: NPR Music Tiny Desk Concert

Check out this fantastic live version of Hadestown's top hits. It features the original cast from the Broadway hit, and trust me, you won't be disappointed! Give it a watch and thank me later!

That’s all for now! Stay safe, everyone. Hug your loved ones. See you Thursday!

Love,

Nicole