And why not? Given the choice, who wants to invest in high risk, early stage teams and untested ideas.
Today, everyone’s looking for investable ideas - those that morphed and pivoted, and those ultimately validated into the consumers’ Hall of Fame. They search investable teams, that have done it before and have succeeded. Those that have gone through the pain and know the taste of success.
On the flip side, supporting later stage companies increases chances of profitable exits and financial success. Just as in nature, the evolutionary process doesn’t offer guarantees. As organisms evolve, they get stronger. Drawing parallels, thousands of teams begin a journey, that only the best-equipped and agile will survive. As incubators in a medical lab offer optimal conditions for growth, collections of specialised organisations now exist in the business world offering supporting services needed to thrive. Together with the entrepreneurs, they form the Startup Ecosystem or community. Today Hong Kong’s FinTech Startup Ecosystem can best be described as infant. According to FinTechHK data, there are some 46 fintech startups in Hong Kong, with 28 fintech events and 2 recently launched accelerators. How well supported are these companies and how can an integrated approach improve their odds of success?
Part I - The industry accelerates but yet to reach cruising speed
FinTech has broken into the last bastion of financial markets, Wall Street. From New York to London, Frankfurt to Hong Kong, industry insiders are peering up from behind monitors. They're witness to a revolution in finance that has been several years in the making.
For many decades, Wall Street and the commercial banking community have enjoyed relatively relaxed competitive environments while earning attractive financial spreads. The financial crisis of 2008 and the emergence of FinTech are beginning to shake-up the landscape.
”Innovation in finance is deliberate and predictable; incumbent players are most likely to be attacked where the greatest sources of customer friction meet the largest profit pools”