The FinTech sector continues to see start-ups being founded every year and investor interest shows no sign of slowing down. According to KPMG, VC investment in the sector increased by more than 100% in the last two quarters of 2020. A record-breaking $98 billion in fintech investment was recorded in the first half of 2021. This includes mergers and acquisitions, VC and private equity investments.
The consolidation trend
With the FinTech sector increasingly growing and maturing and more start-ups being launched, we are expecting to see continued consolidation. FinTech acquisitions happen for a number of reasons, including:
At Moonlight, we have seen this trend with numerous clients, across different sectors – FinTech, RegTech, technology, etc. In our 20 years+ of experience in the FinTech communications space, we have worked on many acquisitions. This is one of the paths start-ups generally consider as an option for their journey. However, the question of how a start-up gets on the radar of big companies still needs to be answered.
The path to exposure for FinTech start-ups
The journey of getting noticed by potential acquirers naturally starts internally. You will need to have market knowledge and products that solve real pain-points, but you must extend to external communications. For FinTech markets, it can be challenging to know how to distill information and present the benefits to clients without external help. Building a strong brand reputation within your industry can help open doors for both acquisitions and partnerships. This needs to be supported by marketing strategies:
The importance of clear communications
For companies to be able to effectively attract clients, partners and acquirers, a clear message is vital. Clarity of communication and targeted media relations will make the difference between successfully building brand reputation and visibility in your sector or fading away into the ‘crowd’.
A communications strategy driven by a company’s USPs and benefits is most effective in placing a FinTech start-up in front of potential acquirers. An all-encompassing strategy – social media, events, awards, public relations, etc. – helps shape brand perception. This means the industry is able to know who you are and what you do.
Due to the very technical and niche nature of the financial sector, we know it is not always easy to find communications specialists who understand what you do. If you are ready to launch or improve your brand, we are here to put our experience to work for you.
Contact us here to learn more about our start-up package.