Fintech attendance at YC Demo Day is steadily declining

Image credits: Bryce Durbin/TechCrunch

Welcome to TechCrunch FinTech! This week, we look at how many fintech companies joined Y Combinator’s Winter 2024 cohort, how much funding they lost in Q1, and more.

Get TechCrunch’s roundup of the biggest and most important fintech stories delivered to your inbox every Sunday at 7am PT. Subscribe here.

big story

Y Combinator held a demo day for its winter cohort this week. As always, the TC team gave it their all. One of the things that struck me was how much fintech representation in their group has decreased. Of the 260 companies included in the latest cohort, nearly 30 of his companies, or 8%, were classified as fintech. This compares to 10% in summer 2023, 21% in summer 2022, and 24% in winter 2022. In other words, compared to two years ago, fintech companies accounted for one-third this year. Among the companies selected this year, Christine noticed that cross-border fintech is currently attracting attention.

This week’s analysis

Fintech funding fell 16% quarter-over-quarter in the three months ended March 31, according to CB Insights’ Q1 2024 Venture Landscape report. But even more troubling than the double-digit drop, the $7.3 billion that fintech startups have raised worldwide in this three-month period marks the sector’s lowest level since early 2017. It was the fact that I did it. On the positive side, there was a 15% increase. A CB Insights spokesperson said that last quarter saw an increase in equity trading, which “means investors continue to show interest in fintech solutions, particularly payments technology.” The number of investments made in fintech startups in the three-month period was 904, up from 786 in the previous quarter, indicating a decline in deal size.

dollars and cents

Manish Singh reports that Flipkart co-founder Sachin Bansal is in talks to raise funding for his new startup Indian Fintech Navi. Bansal is in talks with investors to raise at a valuation of about $2 billion, three people familiar with the matter told TechCrunch. One person said he was aiming to raise between $200 million and $400 million. Bansal has previously raised most of its funding for Navi with its own funds, and this is the Bangalore-headquartered startup’s first major external funding since its founding in 2018.

what else are you writing?

Banks have long financed large-scale renewable power projects, from utility-scale solar farms to horizon-spanning wind farms. But smaller projects like installing a heat pump in someone’s home or renovating an affordable home are often passed over. They simply aren’t making enough money. But the demand is there, and advocates are asking the federal government to help so-called green banks take on these types of projects.

That green bank is now a reality. Last Thursday, the EPA announced it would award $20 billion in Inflation Control Act grants to eight organizations and use the funds for loans to support these projects, Tim de Chant reports. There is.

Interesting headlines

Hapax releases generative AI tool for financial services

Houston technology platform raises Series C round backed by Mastercard

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

Advent to acquire Ryan Reynolds-backed fintech company Nuvei in $6.3 billion deal

Want to provide a tip? Email maryann@techcrunch.com or text Signal 408.204.3036. You can also send a note to all TechCrunch staff to tips@techcrunch.com. To achieve more secure communication, Click here to contact usthis includes SecureDrop (instructions here) and links to encrypted messaging apps.