America is home to over 72,560 startups, the highest number worldwide. Many of these have battled through the first few years, defying the statistic that nearly all of them will fail. Those who have just begun face an uphill climb.
Fintech startups had an easier ride in 2021, as VC money poured in and investment doubled for the sector. Founders just had to mention a few keywords to cash in on the VC FOMO. But then that funding started to dry, and investors’ interest cooled, turning to focus on key metrics.
“With market turbulence, companies need to re-center and focus on their key, core product,” said Drew Glover, Founding Partner of Fiat Ventures. “To be able to focus and stay disciplined is a skill, and founders have the ideas, but few have the experience and ability to put the plan into action. Taking a wrong turn can be an expensive mistake.”
For many sectors, including fintech, a community of start-up veterans can help matters, but for new founders, getting face time with top executives can be challenging. Their lack of expertise can mean they find it difficult to identify when they need support, and when they do reach out, it is often too late.
In addition, early-stage startups often have scarce resources, and key hires that may drive growth are often out of reach. Experienced executives who focus on growth can be expensive, residing outside the budget of a new start-up that is fighting to make ends meet.
“It’s a known fact that thousands of companies are started each year, and only a few make it,” wrote Fiat Growth. “The difference between these two brackets is the people they have leading them. In a time when companies either secure their next round or fall flat, a big hire can make or break you. The best case scenario is to gain the support necessary to reach the next level at an affordable price.”
Connecting Growth Veterans with Founders
Fiat Growth, the startup advisory arm of Fiat Ventures, has had experience identifying the difficulties that promising startups face, which may create barriers to their long-term success. Recognizing early-stage financial constraints, Fiat Growth launched its Fiat Advisory marketplace.
The platform is built to support companies with expertise and tangible plans to push them through their early years in the market until they have the resources to make crucial long-term hires.
“Fiat Advisory provides a marketplace for founders to ask for help and industry veterans to share their expertise,” continued Glover. “So early-stage companies can receive hands-on support they need to put their plans into action without taking the risk of shortening their runway too much or making a crucial, expensive hire too early.”
Fiat’s marketplace connects executives with promising founders who offer support and create and execute personalized playbooks to meet companys’ specific needs and fundraising milestones. This collaborative model is designed to benefit both sides, providing advisors with passive income and equity in start-ups.
Isabelle is a journalist for Fintech Nexus News and leads the Fintech Coffee Break podcast.
Isabelle's interest in fintech comes from a yearning to understand society's rapid digitalization and its potential, a topic she has often addressed during her academic pursuits and journalistic career.