Breaking Down Fintech Funding Sources

Breaking Down Fintech Funding Sources

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When it comes to sourcing funds, one of the greatest challenges is understanding the options available for your cause. Each project has its own goals, and each goal requires a unique approach to funding. Depending on the industry, there might be tons of available resources—or few to sort through.

When it comes to financial technology, finding funding can be extremely difficult. That’s because fintech straddles a few different industries and might be used for profit or non-profit purposes. In other words, it takes investors and funders time to understand what fintech is, what the project’s scope is, and who it benefits.

Unfortunately, Tech Crunch reports that funding for fintech was down 46% from 2021 to 2022, accounting for around $75 billion in funding. While that’s certainly not chump change, it’s almost half the available quantity from the year before. That means that those working in fintech need to be even savvier about acquiring funding and probably should rely on one of the methods listed below.


Thankfully, crowdfunding remains one of the most viable options in fintech. A recent report from Betway highlights multiple successful fintech projects that were funded from crowdsourcing campaigns. While Betway is usually associated with sports betting, it also reported figures for projects like Pebble.

Pebble is a smartwatch project that FitBit picked up back in 2016. Prior to being bought out, Pebble’s creators decided to launch a Kickstarter for their new project. Within only 17 minutes, Pebble nabbed $500,000 in donations, completing its goal. The project went on to include almost 80,000 backers who invested over $20 million.

Government Grants

Financial technology is a booming industry, even if its funding was almost cut in half from 2021 to 2022. And luckily for startups, most governments are investing heavily in fintech projects that could benefit their local markets and constituents. For this reason, government grants remain a highly viable option for fintech creators.

Keep in mind that you might not find any grants offered specifically for the financial technology sector. However, thousands of grants can be used for multiple purposes and, most often, grants that offer ‘innovation funding’ are ideal for fintech projects.

Strategic Partnerships

Given the fact that fintech straddles multiple industries, some creators and innovators seek out strategic business partnerships. The goal here is to grow alongside another business (or multiple businesses) in order to build value together. This is part of the reason that networking is so important.

Networking, through attending webinars and conferences, lets fintech innovators meet like-minded entrepreneurs. In fact, there may be fewer angel investors and breakout unicorns in the last few years, but there are a growing number of businesses that want to strengthen their outlook and hold by partnering with others—so always follow up on those important meet-and-greets.

Angel Investors

As outlined above, the number of angel investors in fintech has lessened in the last two years. That’s because most of the biggest projects have taken off or flopped. The industry, though booming, contains many uncertainties that investors of all stripes might back away from.

So, how can fintech projects find their perfect angel investor? Similar to a grant, it’s important to seek out opportunities. Angel investors can be found through online databases—but to stand a chance at currying their favor, it’s always a good idea to do a bit of extra research to see why your project is a good fit for an investor, then demonstrate that with a strong presentation. 

Venture Capital

Hooking a venture capital firm is probably one of the most difficult feats in funding, regardless of your industry. Venture capital firms remain at the forefront of the market, which means they’re on the hunt for a project that will pay off in the future. This means your project needs to have a clear outlook and be able to differentiate itself from competitors.

But venture capital firms will be on the lookout for other details. They’re looking for bold new moves that will solve real-world problems and, potentially, become relevant on a global scale. When you finally get a meeting with a firm, be sure to have all your ducks in a row.

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