Technology company FIS, which specializes in providing financial services, announced the launch of the FIS Fintech Hangouts 2024 series.
The firm presented the mentioned program last Wednesday, January 31st. This solution brings together financial institutions, startups operating in the fintech industry, representatives of the investor community, FIS experts, and FIS Fintech Accelerator participants.
The company’s press release notes that the new program provides for meaningful conversations, allows the sharing of skills and knowledge gained through practical experience and demonstrated effectiveness in the area of applying, and is a platform for presenting the amazing work of the sphere of fintech.
FIS Fintech Hangouts 2024 kicked off in January. A kind of preliminary implementation of this program began with the stage of the so-called deep dive. In this case, it implies a detailed study and analysis of the importance of responding, including preventive, to various risk factors that are relevant to the fintech industry. Special attention is also paid to compliance issues. It is worth noting that this aspect and risks are a kind of barrier that sometimes turns out to be insurmountable for fintech startups.
The accelerator program, which will begin accepting applications in March, will last 12 weeks. In this case, fintech companies are allowed to modernize their product models by adding the most effective solutions to them. Also, during the program, it will be possible to gain knowledge that allows you to expand the scale of activities. FIS Fintech Hangouts 2024 participants will attend lectures by bankers, heads of financial services, and industry experts.
The launch of the program was announced and will be carried out during a period that cannot be described as favorable for startups. Currently, companies that are in the initial stage of existence have limited access to financing. This problem is partly due to the difficult situation in the macroeconomic environment, which has made investors more cautious about new projects involving costs.
This week, the media reported that venture capitalists have amassed $311 billion in unspent cash. Such accumulations are sometimes called the dry powder. Currently, there is a slowdown in the financing of the technology sector.
Ibrahim Ajami, head of the venture capital unit Mubadala Capital, which is part of the Abu Dhabi sovereign wealth fund Mubadala Investment Company worth $ 276 billion, said during a conversation with reporters that the world would not be flooded with venture capital money again. Currently, the flow of money is drying up. Against this background, the number of startups facing setbacks has doubled. Companies such as Hopin and Convoy going out of business in 2023.
Nigel Dawn, global head of private equity advisory at Evercore investment bank, said during a conversation with media representatives that in some ways dry powder is a mirage, noting that this is a theoretical number. According to him, portfolio companies in venture funds are currently feeling cash squeeze more than ever. He also noted that the idea that startups can simply grow and multiply investment funds without visible profitability and in conditions of inexhaustible financing is no longer relevant.
In January, Visa also announced its intention to support the entrance of the accelerator and venture capital company Plug and Play into the Canadian fintech market. The mentioned firm has launched a similar acceleration program for startups in the United States. Plug and Play was founded in Silicon Valley. The company unites corporations, venture capital firms, universities, government agencies, and startups. Plug and Play also organizes startup accelerator programs.
As we have reported earlier, Visa Launches Africa Fintech Accelerator.