Our latest update on M&A values and trends in the seven sectors of the fintech industry that we follow and sometimes lead follow HERE.
As you will see in the report, it was a busy month – for deals and for us. We’re working hard to help clients that are looking to buy, sell or raise capital.
Most of our clients have unique, and creative approaches to helping clearly defined customers solve real problems. Those are the types of companies that we love to work with most – especially if they also have a large market opportunity, have reached scale and are growing. But lately, a few companies have approached us asking for help raising capital or selling when it is exceedingly clear that they are riding on the backs of cool technologies that may or may not solve real problems. They are often what we call “fully buzzword compliant solutions looking for a problem” (Cloud, SaaS, PaaS, IaaS, Big Data, Analytics, Low-Latency, SQL, SOAP, Hybrid, IoT etc.)
We love new and creative ways of solving problems – and as a subset of that we love new technologies – but, as we sometimes tell potential clients, before you try to sell the world on your great new drill bit (for example), be sure that you can clearly communicate why the unique features of your drill bit solve real problems for specific customers. The fact that your bit stays sharper 30% longer than your competitors’ may be great – but who benefits if it costs 3x as much? And who will buy? If it is fully capable of drilling through six inches of hardened carbon steel and costs 3x the price of a standard drill bit, before you flog it, you should have a clear sense of how many people actually care enough about that added feature to spend the extra money. Further, you should understand that just because your drill bit is bigger, sharper, harder, or pink even does not necessarily mean it’s a better solution for the carpenter who just wants to drill 1/2 inch holes through 3/4 inch plywood.
Our May Fintech Market Update is focused on m&a values and trends in the seven sectors of the fintech industry that we have followed and sometimes led for more than 14 years. Most of the leaders of these companies do understand how their firm solves real problems better than anyone else on the planet – and they know who cares. We welcome your comments.