Program Participants Report High Success Rate With Funding, Customer Acquisition, Employment Growth and Revenue
BOSTON, MA / ACCESSWIRE / April 29, 2021 / FinTech Sandbox, a nonprofit that makes data and infrastructure available to early-stage fintech startups at no cost, today announced the results of its annual survey of current program participants and alumni illustrating the program's positive impact on startup performance, viability and ability to source funding.
Since launching over six years ago, FinTech Sandbox has accepted over 230 startups into its program, many have gone on to grow their businesses based on the support they received in the program. The nonprofit welcomes young companies from all over the world with current participants being 28 percent international and 72 percent U.S.-based. Between 2018 and 2020, the percentage of non-U.S. participants steadily increased from 21 percent to 33 percent.
"The results of our annual survey demonstrate the program's effectiveness in supporting startups at their early stage of growth when access to data is most vital to their long-term success," said FinTech Sandbox Executive Director Kelly Fryer. "We are fortunate to have the support of sponsors and data providers who understand the value of data and other resources for fintechs, which in time, ultimately benefits the entire financial services industry. We're pleased to see our continued, positive and lasting impact on the fintech startup ecosystem both in the U.S. and internationally."
The survey, which was completed in Q1, 2021, and was directed at both current and alumni program participants, had the following results:
- Fintechs Hire More Talent During and After the Program: By giving free access to data, FinTech Sandbox has proven to deliver on its mission to drive job growth and economic development. Rather than paying for expensive data sets, startups were able to hire additional employees either during or after completing the program.
- The vast majority of both current (73 percent) and alumni participants (61 percent) hired between 1-9 employees, while one quarter of alumni had between 10-20 new hires.
- Increased Funding Indicates Program Helps Make Fintechs More Attractive to Investors: The program shows a promising impact on the funding status of current participants, as well as the ability to attract funding after exiting the program.
- Among current participants: 33 percent are in the pre-seed stage, while among alumni 29 percent are in the seed stage, seven percent are in Series A; 4 percent each report Series B, Series C and Series D.
- 57 percent of current participants, 70 percent of alumni participants have received funding since joining FinTech Sandbox
- Fintech Sandbox Benefits Fintechs' Bottom Line: Most alumni participants were able to increase their revenue and customer base since leaving the program, further attesting to the program's positive impact on company performance.
- Thirty-seven percent of current participants are pre-revenue, compared to only 14 percent of alumni participants. Roughly one third of alumni participants report being in the sustainable $100,000-999,000 range.
- Forty-four percent of current B2B participants, compared to 46 percent of B2B alumni acquired 1-10 customers since joining FinTech Sandbox. Over 20 percent in both groups acquired between 11 and 50 customers.
- Participants and Alumni Embrace Sustainable Finance Principles: Three-quarters of both current and alumni participants see their business model aligned with the values of sustainable finance and inclusive growth.
- Diversity in Fintech Leadership Continues to Grow Among Current Participants: The program attracts and nurtures startups with diverse leadership teams.
- More than one third of current and alumni participants have women as founders or in other senior leadership positions, while 52 percent of current participants report being racial or ethnic minorities compared to 32 percent among alumni.
"FinTech Sandbox enabled us to access critical data sets when we needed them the most, and at a stage when it seemed most inaccessible due to its high cost," said Aimeelene Gaspar, CEO & Co-Founder at LionX. "But beyond data, we value the community of like-minded entrepreneurs, and the professional support we have received from both our fellow participants and the FinTech Sandbox team, which have truly made a difference for us."
"When we launched FinTech Sandbox in Boston over six years ago, we were determined to support the global fintech community and help promising fintechs accelerate product development by providing free access to data when it would be most impactful," said David Jegen, Co-Founder of FinTech Sandbox and a Partner with F-Prime Capital. "Today, we have not only expanded our geographical reach and worked with startups from all over the United States, Canada, the United Kingdom, and continental Europe, but built a program which puts startups on the path for success. Looking ahead, we remain steadfast in our commitment to the startup ecosystem and will identify ways to further improve on our offerings, such as through expanded data sets and additional networking opportunities."
For more information on joining as a startup, community member, or as data or infrastructure partner, please contact [email protected], or visit https://fintechsandbox.org.
About FinTech Sandbox
FinTech Sandbox is a nonprofit that promotes innovation in financial technology and financial services globally by providing FinTech entrepreneurs and startups with access to critical data and resources. FinTech Sandbox also organizes Boston FinTech Week, next taking place from September 27 - October 1, 2021. To receive regular updates, please visit: http://bostonfintechweek.org/. For more information, please visit https://fintechsandbox.org/ and https://www.twitter.com/FinTechSandbox.
SOURCE: FinTech Sandbox