19 February 2018
visit www.nextgenbanking.co.uk/

500 Startups launches $25m fintech fund

24 February 2016  |  9306 views  |  2 Team meeting

Early-stage venture firm 500 Startups is launching a $25 million fintech fund focussed on investing in startups building "financial services for the rest of us".

Founded by "super angel" investor Dave McClure, 500 Startups has already pumped money into several fintech outfits, including Simple, CreditKarma and iMoney.

Sheel Mohnot, who will run the new fintech fund, says that 500 Startups' work in the field has led it to conclude that traditional financial institutions are still not serving millennials, minorities, women, and emerging markets effectively.

He also says that the incumbents are not innovating fast enough and that technology, specifically smartphones, will slash the cost of delivering financial services to billions of underserved people and businesses.

But startups face big challenges because of the regulatory burdens in financial services, the importance of customer relationships and need for marketing and distribution.

500 Startups is vowing to help meet these challenges not only with a dedicated fund but accelerator and corporate partner programmes. The fund aims to invest in around 100 firms around the world, working in areas including lending, investment advice, PFM, blockchain, money movement, and insurance.

Meanwhile around 20 firms a year will work with the accelerator in the San Francisco Bay Area and the partner programme will link startups to established players in the FS and technology industries.

Comments: (2)

Gerard Hergenroeder
Gerard Hergenroeder - Payments Shark - Millersvile | 25 February, 2016, 03:54 With 43 years of real Fintech experience I predict most will fail since they do not know what the banks know in terms of where is the real money made. And, they will run out of money. Even PayPal and Square are at risk of failure today!
Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
A Finextra member
A Finextra member | 26 February, 2016, 14:01

I don't think you have to be an expert to state that most start up will fail, that is a given and well documented. Many of the people entering the Fintach field are coming with a banking back ground and understand the bank enviroment. 

On another note, why do you feel Paypal is at risk of failure? Last year's profit was $1.5B with an 8.5% increase in profit over previous year. Not excatly on the ropes.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Corporate venture investment behind 2015 surge in UK fintech deals

Corporate venture investment behind 2015 surge in UK fintech deals

24 February 2016  |  7056 views  |  0 comments | 16 tweets | 7 linkedin
BBVA increases newly independent fintech venture fund to $250m

BBVA increases newly independent fintech venture fund to $250m

11 February 2016  |  13621 views  |  1 comments | 19 tweets | 13 linkedin
Finnish fintech fund launches

Finnish fintech fund launches

25 January 2016  |  5531 views  |  0 comments | 13 tweets | 6 linkedin
Crazy fintech predictions for 2016

Crazy fintech predictions for 2016

04 January 2016  |  34308 views  |  3 comments | 109 tweets | 63 linkedin
VCs like bees around honey as fintech heats up

VCs like bees around honey as fintech heats up

18 December 2015  |  13231 views  |  1 comments | 27 tweets | 12 linkedin
Aussie super fund to join fintech spending spree

Aussie super fund to join fintech spending spree

08 December 2015  |  4253 views  |  0 comments | 10 tweets | 1 linkedin
Wells Fargo pumps funds into accelerator startups

Wells Fargo pumps funds into accelerator startups

05 November 2015  |  6125 views  |  0 comments | 7 tweets | 5 linkedin

Related blogs

Create a blog about this story (membership required)
Visit https://www.capgemini.comVisit www.vasco.comvisit www.swift.com/your-needs/instant-payments

Who is commenting?

Top topics

Most viewed Most shared
Saudi central bank provides sandbox for banks to try out Ripple techSaudi central bank provides sandbox for ba...
11107 views comments | 16 tweets | 12 linkedin
ABN Amro moves escrow accounts to the blockchainABN Amro moves escrow accounts to the bloc...
8598 views comments | 15 tweets | 13 linkedin
Aussie real-time payments platform goes liveAussie real-time payments platform goes li...
8591 views comments | 15 tweets | 43 linkedin
ECB launches staunch defence of cashECB launches staunch defence of cash
8524 views 10 comments | 21 tweets | 26 linkedin