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Views

• The biggest fintech product is digital One thing is certain: at some point,
payments, comprising 25 percent of
the ecosystem (McKinsey) three to five years down the road,
• The U.S. consumer adoption of fintech certainly no longer than 10 years, the
is 46 percent (Ernst and Young) VC is going to have to sell its shares and
• The U.S. fintech market's transactional return money to the investors.
value's compound annual growth rate
is 8.6 percent over the forecast period,
2019 to 2024. (Business Wire) growers will lose money. But things are different in the VC world.
Not everything will be sold. The primary rule of the VC is don't
• U.S. consumers have identified fintech lose the capital, but capital will be lost. You might want to keep this
benefits as convenience, security, sim- in mind the next time you hear a presentation about the Next Big
plicity, transparency and personaliza- Thing in fintech.
tion. (Mordor Intelligence)

• Through Q3 2019, there were 18 VC Brandes Elitch, director of partner acquisition for CrossCheck Inc., has been a cash
backed fintechs (Deloitte) management practitioner for several Fortune 500 companies, sold cash manage-
ment services for major banks and served as a consultant to bankcard acquirers. A
• 1158 funding events helped 841 fin- certified cash manager and accredited ACH professional, Brandes has a Master's in
techs raise $46.6 billion through mul- Business Administration from New York University and a Juris Doctor from Santa
tiple rounds of financing (Deloitte) Clara University. He can be reached at brandese@cross-check.com.
• U.S. fintech based investments stand at
$24.2 billion (Deloitte)
A crucial truth

Let's stop a minute and think about all this
while considering how VCs operate. Do you
really think all these startups are going to We’re More Than an Authorization
succeed in the marketplace, to the extent
that they will be sold or go public at a high We’re The Best Solution For You and Your Merchants
multiple of what the VC invested? The answer
is, of course not.

We are already seeing a slowdown in the
digital wealth management field. Only one
wealth tech startup launch occurred in the
first nine months of 2019. The 19 players that
have entered this market since 2017 represent RETAIL/POS DEVELOPERS
only about half of the 34 new entrants that
launched in 2016. As Shelagh Dolan put it, eCOMMERCE
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