Ten reasons fintech start ups fail

We are lucky enough to benefit from the experience of some gnarly fintech investment veterans. Experience we like to share with our portfolio businesses, and more broadly, fintech startups in general. Our Venture Partner, Pascal Bouvier knows this territory well, when he suggests some reasons why fintech start ups fail, it makes sense to pay attention.

Pascal calls out his ten reasons as:

  1. Not thinking about proper licensing
  2. Not thinking about what it takes to raise money from strategic investors
  3. Disregarding compliance as a pesky annoyance
  4. Not choosing a VC with fintech experience
  5. Thinking that the general laws of growing a startup apply uniformly in fintech
  6. Thinking that competing on cost will win the day
  7. Thinking that IP is easily defensible
  8. Payments is easy – a false positive
  9. Overlooking legal aspects
  10. Not paying attention to business cycles

If any of those concerns resonate for you, best read the full post – with more detail explaining Pascal’s thinking around each potential pitfall – the post is on Pascal’s personal blog here or on the CB Insights site here.