TechCrunch Welcome to FinTech! This week, we’ll take a look at how many fintech companies were included in Y Combinator’s Winter 2024 cohort, how many lost funding in the first quarter, 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 pulled out all the stops. One thing that stood out to me was how much fintech representation is decreasing in its cohort. Of the 260 companies included in the latest cohort, nearly 30 (8%) were classified as fintechs. This compares to 10% in summer 2023, 21% in summer 2022, and 24% in winter 2022. Therefore, compared to two years ago, the proportion of fintech companies this year has decreased by one-third. Among the companies selected this year, Christine noted that cross-border fintechs are currently popular.
This week’s analysis
Fintech funding fell 16% quarter-over-quarter in the three months ended March 31, according to CB Insights’ Q1 2024 State of Venture report. But more troubling than the double-digit decline is the $7.3 billion raised globally by fintech startups in the three-month period, the lowest level for the sector since early 2017. On the positive side, there was a 15% increase. Trading in the stock increased last quarter, according to a CB Insights spokesperson. This “suggests that investors continue to show interest in fintech solutions, particularly payment technology,” he said. Over the past three months, investments in fintech startups amounted to 904, an increase from 786 in the previous quarter, resulting in a smaller transaction size.
dollars and cents
Manish Singh reports that Flipkart co-founder Sachin Bansal is in talks to raise capital for his new startup, Indian fintech Navi. Bansal is in discussions with investors to raise funding at a valuation of about $2 billion, three sources familiar with the matter told TechCrunch. One source said he plans to raise between $200 million and $400 million. Bansal has so far raised most of Navi’s funding itself, which will be the Bengaluru-based startup’s first major external round of funding since it was founded in 2018.
What else are we writing about?
For years, the bank has been financing large-scale renewable power projects, from utility-scale solar farms to wind farms across the horizon. But smaller projects, such as installing a heat pump in someone’s home or renovating an affordable home, are often ignored. They simply weren’t profitable enough. But the demand is there, so advocates are clamoring for the federal government to support so-called green banks that would underwrite these kinds of projects.
The green bank is now a reality. Last Thursday, the EPA awarded $20 billion in grants to eight agencies through the Inflation Reduction Act and will use the funds to provide loans to help with their projects, Tim De Chant reports.
Headlines of high interest
Hapax launches generative AI tool for financial services
Houston Tech Platform Raises Series C Round with Mastercard Backing
Brim Financial closes $85 million Series C led by EDC to fund U.S. expansion.
Appears to acquire Ryan Reynolds-backed fintech Nuvei for $6.3 billion
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