The digitization of the financial industry has accelerated in recent years, and to invest in…
For many, the idea of investing in FinTech is exciting. After all, who doesn’t want to say they invested in the next PayPal or Square in their starting phases? But how do you know what to invest in? How can you be certain you’re investing in something that will be worth it in the long run?
While there’s no guarantee that investments will make you money, here are some things to consider when looking for innovative investments.
What are innovative investments in FinTech?
Innovative investments in FinTech are companies that are not only trying to make a difference in the world, but are doing so creatively.
4 keys to value for innovative investments in FinTech
Before deciding to invest in FinTech, it’s important to make sure that the companies you invest in are worth your time and money. If it’s not an innovative investment, is something you’re really interested in investing in? Here are 4 key things to consider when looking for value in innovative investments in FinTech.
One of the first things you should look at when investing in FinTech is the uniqueness of the product. Sure, there are plenty of products out there that are putting new spins on systems we’re familiar with, but what makes this specific company unique? Are they trying to improve a process that has been an issue in the past, such as PayPal, by sending money to contractors?
Make sure you look into the company and see if they’re making changes that make sense. While unique is good, there is such a thing as being too unique. Verify the company is a good fit for your portfolio before investing.
2. Social Responsibility
In the world we live in, with so many people struggling to make ends meet and having hit a point of no return in climate change, it’s important to make sure the companies we’re investing in are being socially responsible.
Are they making sure their real estate properties are helping improve the eco-system by adding in solar panels? Do they pay their employees fair, livable wages? These may not be things we want to think about, but we’ve entered a time where we can’t afford to not think about it either.
3. Awards Received
Another key value to look at when considering innovative investments is the awards they’ve received. Since we’re able to invest in companies all over the world, it’s easy to miss an up-and-coming company in the sea of startups. However, one easy way to tell if a company is providing value is to see if they’ve won an award, either locally or internationally. If someone else has found value in their company, then that’s a good sign that they might be worth looking into.
4. Social Media Presence
The last valuable indicator for innovative investments is their social media presence. Even if you’re not on social media, it’s worth taking an hour or so to look into a company’s social media presence.
Do they provide value to their followers? Are they professional in what they post? Do they seem to know what they’re talking about? It’s not about the number of followers they have, but the consistency and value of their posts.
If a company is on social media and actively using it, then you know they understand that technology changes and that investing in social media is an investment in their company.
There are countless other indicators for evaluating the value in an innovative investment in FinTech, but these are some of the most common things to look at.
Now that you know what to look for in innovative investments in FinTech, you may be wondering where to look. Read on to learn more.
Where to find innovative investments in FinTech
There are plenty of places to look for innovative investments in FinTech. Some places you may be familiar with are social media and platforms like Kickstarter. There have been many times when I’ve been scrolling through social media and an ad for a new company has stopped my scroll.
That’s all fine and dandy for when you’re not really looking for FinTech companies to invest in, but what about when you are? Sure, you could spend hours sifting through Facebook pages and Kickstarter campaigns to find maybe one-two suitable companies. Or, you can head over to Finnovating to find them all in one place.
One great way to find innovative investments in FinTech is through the Finnovating platform, which can help you connect with many investment opportunities by bringing you directly into the FinTech ecosystem. The Discovery tool connects you to the world’s largest FinTech database of startups, corporations, and investors, with over 50,000 opportunities for collaboration between corporations, FinTech, and investors.