Embedded finance, or why fintech mega VC rounds have become so common

How dozens of fintech firms in the end chanced on the device for profits

One more day, any other monster fintech enterprise round.

This morning, it became once personalized banking app MoneyLion, which raised $100 million at a shut to unicorn valuation. Final week, it became once N26, which raised any other $170 million on top of its $300 million round earlier this 365 days. Brex raised any other $100 million excellent month on top of its $125 million Series C from stupid excellent 365 days. Meanwhile, firms like payments platform Stripe, financial savings and investment platform Raisin, traveler lender Uplift, mortgage backers Mix and Higher, and financial savings depositor Acorns have moreover raised huge unique rounds this 365 days.

That’s all on top of 2018’s document-breaking 365 days for fintech, which saw $52.5 billion of investment drift into the house based totally mostly on KPMG’s estimate.

What’s with the general money flowing into the fintech world? And what does all this investment portend not best likely for the industry and diversified capability entrants, but moreover for purchasers of business products and companies? The resolution is that this unique wave of fintech startups has found out embedded finance, and that it’s miles changing the total economics of disruptive monetary products and companies.

First, this isn’t (essentially) about blockchain

Let’s accumulate one bid out of the device honest away, for at any time when the topic of business products and companies and digital disruption device together, some blatherer repeatedly yells blockchain from the proverbial motivate row (generally with a minute of foaming on the mouth I might per chance per chance maybe add).

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