Today in FinTech: FinTechs and venture capital
Cash rained on FinTechs in 2021 as venture capitalists nearly doubled funding in value and deal volume, according to data from S&P Global Market Intelligence.
However, FinTechs shouldn’t be planning the same kind of financial love in 2022 – between falling valuations on the public stock market and ongoing interest hikes, VCs may well be thinking of other plans for those dollars. of investment.
Fyncr Unveils Mobile Credit Card Bill Pay App
FinTech startup Fyncr wants to make it easier for people to pay their bills by offering the first all-in-one app that’s compatible with every credit card in their wallet.
Along with helping people manage their credit card bills more easily, the Fyncr app also aims to help users save money and spend smarter. Users can also earn rewards for offers, discounts and more.
Elevate Credit ordered to pay $3.3 million for predatory lending practices
Elevate Credit, a FinTech startup launched in 2014, found itself in legal hot water in Washington, D.C., for making loans and providing lines of credit above the district’s 24% interest rate cap. . Well above the cap, in fact, up to annual percentage rates (APR) ranging from 99% to 251%.
Brought to justice by the District of Columbia Attorney General’s Office, Elevate must now pay a minimum of $3.3 million to more than 2,500 people, Attorney General Karl A. Racine said.
Additionally, the FinTech was ordered to pay a $450,000 fine to the district and waive more than $300,000 in interest owed to Elevate by consumers.
Report: US FinTech Venture Capital Funding Doubled in 2021
FinTechs had a strong year in 2021, with venture capitalists happy to fund themselves as startup valuations soared. Data from S&P Global Market Intelligence indicates that last year “will be a tough act to follow.”
With valuations falling and interest rates more than likely rising, FinTechs may struggle to find venture capital money in 2022.