The Future Is Not Bright For Most Angel-Stage Fintech Startups

The landscape of payments, lending, artificial intelligence might seem bustling thanks to all the industry hoopla around it, but the success rate for a startup to make it in these fields — or for that matter any of 15-plus fintech segments — is slim. According to a new Medici report titled “Democratization of Startup Financing,”, only one out of 10 fintech startups survive. The main reason for this boils down to — surprise — money. According the report, seed/angel funding per startup among fintechs has drastically fallen over the past seven years. In fact, between 2010 and 2017, that amount dropped 57%. The average funding for seed-stage fintechs in 2017 was $3 million, in 2010 it was $6.84 million. In 2017, the total funding for seed-stage companies was $851 million.

On the brighter side, funding for more established fintechs is on the rise across the world — the average funding for late-stage VC rounds in 2017 increased to $1.56 billion from $26.64 million in 2010. In 2017, the total funding of early-stage startups was at $7.1 billion and late-stage was at $6.9 billion. In 2010, those numbers were at $316.33 million and at $156 million respectively.

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