A significant drop in FinTech investments recorded last year: This competition provides a new opportunity for innovative startups with prizes up to 10,000 euros
Investments in financial technologies experienced a significant decline last year. In the third quarter of 2023, the value of investments decreased by 36 percent compared to the previous year, with a total of 6 billion dollars invested in FinTech companies and their new solutions on the market, as concluded by an analysis from S&P Global Market. Alongside the decline in invested capital, the number of transactions also decreased.
However, experts caution that these are positive developments and may indicate a serious maturation of the FinTech market. Despite the decrease in the number and size of investments, experienced startups, already in later rounds of capital attraction, maintained their volume and number of investments, regardless of the rest of the industry.
In an interview ahead of the largest regional FinTech conference – Money Motion 2024 – Božidar Pavlović, CEO of Jackie agency with over 25 years of experience in banking, finance, and new technologies, explained that nothing surprising is happening:
“Investment cycles have always had their ups and downs, affecting not only FinTech. Global events have simply taken their toll. However, we see the first signs of recovery, and I am confident that we will see many more investments in the near future. Nevertheless, compared to pre-crisis times, strong alignment of products with market needs and demonstrating traction will be more important than ever.”
A new investment cycle is starting in FinTech startups that can prove their growth, sustainability, and innovation in solving specific user and societal problems, as confirmed by a new report from the global consulting company McKinsey, announcing the maturation of the entire FinTech market.
Teams already achieving this with their solutions will have the opportunity to join the Money Motion Startup competition again this year. The top 10 applications will be selected to pitch their business solutions and plans before a jury of six investors and industry experts. The top three startups will share a prize pool of 10,000 euros, and their names will be heard by more than 2500 attendees at this year’s conference, taking place on March 21st and 22nd at the Zagreb Fair.
All startups working on technological solutions in the fields of banking, financial management, investments, insurance, crypto trading, and other financial technologies are invited to apply for the competition on the conference’s official website. Applications are open until February 15th, and the pitch competition will take place during the first day of the conference on the startup stage under the patronage of the Croatian Agency for SMEs, Innovation, and Investments (HAMAG-BICRO), the most important government agency for supporting small and medium-sized enterprises and an essential address for young and talented innovators developing their products and services to the commercial level using European funds and competing in the global market.
“As innovation is the driver of growth and development in the Croatian economy and a significant competitive advantage, it is extremely important for us to establish contacts with young entrepreneurs and monitor their development. Therefore, conferences like Money Motion are significant as they bring together all stakeholders in the startup system, from investors and mentors to young entrepreneurs and innovators,” said Marijana Oreb, a member of the HAMAG-BICRO management. She added that they believe this year’s conference will attract even more visitors, and their collaboration will yield many successful innovative products and services.
The Money Motion Startup program and competition as a separate entity on its stage were created with the organizers’ desire to leverage their knowledge, connections, and resources to bring together all the key steps for the success of FinTech startups in one place. Each of them aims to change the world and become a successful corporation, believes Luka Sučić, co-founder of Money Motion. Corporations are attracted to innovative ideas from startups that have the potential to disrupt their business models one day. However, it often happens that a corporation, due to fundamentally different functioning and its requirements, can quickly stifle a startup with a small team.
“That is precisely why we designed the Money Motion Startup program. We have experience in startups but also in working in corporations, and we know how to help both sides find a common language. Through the Money Motion Startup competition, a startup will not only gain exposure but also receive crucial feedback from people to whom they will soon offer their services,” he says and adds:
“Networking is the last but not negligible part of the story – Money Motion is neutral ground where startups and corporations can mingle without either side feeling threatened or out of place.”
The Money Motion Startup stage announces a rich program that will address various topics related to the development and growth of FinTech startups through different lectures, panel discussions, and fireside chats. They are bringing in leading regional venture capital funds such as LAUNCHub Ventures and GapMinder Venture Partners, accelerators, and experts, as well as globally successful FinTech companies that will share their journey with the visitors, confirmed Lana Ugrčić, coordinator of the Money Motion Startup program.
“We believe that by fostering a strong community that exchanges information and mutually supports each other, we can collectively drive the FinTech industry forward, making significant strides in financial technology and its application in today’s rapidly changing world,” concluded Ugrčić.
Applications for the Startup Pitch, more about the Startup program, the main and brand new FinTech 2030 stages, and tickets for the conference can be found on the conference’s official website. Currently, Early Bird tickets are on sale for 199 euros and student tickets for 49 euros.