Welcome to For Millionaires Fintech! This week, we’re simply what number of fintech corporations made it into Y Combinator’s Winter 2024 cohort, how a lot funding slid within the first quarter, and extra!

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The large story

Y Combinator held demo days for its Winter Cohort this week. As all the time, the TC workforce was throughout it. One factor that stood out to me was simply how a lot fintech illustration of their cohorts is shrinking. Of the 260 corporations within the newest cohort, practically 30 of them, or 8%, have been categorized as fintech. That compares to 10% in the summertime of 2023, 21% in the summertime of 2022 and 24% within the winter of 2022. So there was one-third the proportion of fintech corporations this yr in comparison with two years in the past. Of the businesses that have been picked this yr, Christine observed that cross-border fintech is scorching proper now.

Evaluation of the week

Fintech funding slid by 16% quarter-over-quarter in the course of the three-month interval ended March 31, based on CB Insights’ Q1 2024 State of Enterprise Report. However much more troubling than the double-digit dip was the truth that the $7.3 billion raised globally by fintech startups within the three-month interval marked the bottom degree the sector has seen since early 2017. On the plus aspect, there was a 15% uptick in fairness deal-making final quarter, which “means buyers proceed to indicate curiosity in fintech options — significantly funds tech,” based on a CB Insights spokesperson. Through the three-month interval, 904 investments have been made into fintech startups, which was increased than 786 within the earlier quarter, signaling smaller deal sizes.

{Dollars} and cents

Manish Singh studies that Flipkart co-founder Sachin Bansal is in talks to lift capital for his new startup, Indian fintech Navi. Bansal is speaking to buyers to lift at a valuation of round $2 billion, three sources acquainted with the matter advised For Millionaires. One supply mentioned he’s trying to elevate between $200 million and $400 million. Bansal has largely self-funded Navi so far, and this is able to be the Bengaluru-headquartered startup’s first giant outdoors fundraise because it was based in 2018.

What else we’re writing

For years, banks have been financing giant renewable energy initiatives, from utility-scale photo voltaic farms to horizon-spanning wind farms. However smaller initiatives, like putting in a warmth pump in somebody’s house or retrofitting reasonably priced housing, typically get handed over. They merely haven’t been profitable sufficient. However the demand is there, which is why advocates have been clamoring for the federal authorities to assist a so-called inexperienced financial institution, which can underwrite these kinds of initiatives.

That inexperienced financial institution is now a actuality. Final Thursday, the EPA announced that it had awarded $20 billion in grants from the Inflation Discount Act to eight organizations that can use the cash to make loans that can assist with these initiatives, studies Tim De Chant.

Excessive-interest headlines

Hapax launches with generative AI tool for financial services

Houston tech platform raises Series C round backed by Mastercard

Brim Financial closes $85M Series C led by EDC to fund US expansion

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

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