Fintech representation at YC Demo Days is definitely shrinking

Welcome to TechCrunch FinTech! This week, we’ll find out how many fintech companies entered Y Combinator’s Winter 2024 cohort, how much funding dropped in Q1, and more!

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big story

Y Combinator held a demo day for its winter cohort this week. As always, the TC team gave it their all. One thing that strikes me is that fintech’s representation within their cohort is shrinking. Of the 260 companies in the latest batch, nearly 30, or 8%, are classified as fintech companies. This compares to 10% in summer 2023, 21% in summer 2022, and 24% in winter 2022. As a result, the share of fintech companies this year is one-third what it was two years ago. Among the companies selected this year, Christine noticed that cross-border financial technology is now very popular.

Analysis of the week

Fintech funding fell 16% sequentially in the three-month period ended March 31, according to CB Insights’ Q1 2024 Risk Profile Report. But more troubling than the double-digit decline is the fact that fintech startups raised $7.3 billion globally in three months, the lowest level for the industry since early 2017. On the positive side, fintech startups raised 15% globally. A CB Insights spokesperson said the increase in equity deals last quarter “means investors continue to show interest in fintech solutions, especially It’s payment technology”. In three months, fintech startups received 904 investments, up from 786 in the previous quarter, indicating a reduction in deal size.

dollars and cents

Manish Singh reports that Flipkart co-founder Sachin Bansal is in talks to raise funds for his new startup Indian fintech Navi. Three people familiar with the matter told TechCrunch that Bansal is in talks with investors to raise funds at a valuation of about $2 billion. He hopes to raise $200 million to $400 million, one source said. Bansal’s Navi has been largely self-funded so far, and this will be the Bengaluru-based startup’s first major external round since its inception in 2018.

What else should we write?

Banks have been financing large-scale renewable energy projects for years, from utility-scale solar farms to wind farms stretching across the horizon. But smaller projects, like installing a heat pump in someone’s home or retrofitting affordable housing, often get overlooked. They simply don’t make enough profit. But the demand is there, which is why advocates have been calling on the federal government to support a so-called green bank that would underwrite such projects.

Green banking is now a reality. By Tim De Chant On Thursday, the EPA announced it had awarded $20 billion in grants under the Inflation Suppression Act to eight organizations that will The funds will be used to issue loans to help implement these projects.

High-profile headlines

Hapax launches generative AI tool for financial services

Houston tech platform secures Series C funding backed by Mastercard

Brim Financial completes $85 million in Series C financing led by EDC to fund U.S. expansion

Advent acquires Ryan Reynolds-backed fintech Nuvei in $6.3B deal

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