Name: Investor insights: A booming landscape in 2022
Uploaded: 2022-04-22T17:01:11.618Z
Duration: 533.93
Description: The fintech ecosystem is booming with new players offering innovative, profitable solutions. Investors are looking to get in early on some of the exciting prospects coming onto the scene. Hear from the CEO of one of Turkey's biggest corporate venture capital firms, İhsan Elgin, as he shares some of the exciting areas being invested in this year and why you should act quick.

Ihsan.vtt

English

{{00:00:00}}
Entrepreneurs sometimes getting
confused about raising money.

{{00:00:03}}
They're trying to, you know, always
show that they're a candidate of

{{00:00:08}}
something, they need to choose
me, they need to choose me.

{{00:00:11}}
No, you are entrepreneur, you
need to choose your investor.

{{00:00:15}}
Well, I'm excited to talk
to you about investments,

{{00:00:18}}
and you know, particularly,
global funding for FinTech.

{{00:00:21}}
So it's obviously more than
doubled year on year in 2021,

{{00:00:24}}
with more unicorns than ever.

{{00:00:26}}
Do you think we will continue to
see similar growth in the pandemic,

{{00:00:29}}
or post-pandemic new normal this
year and in 2022 and beyond?

{{00:00:33}}
Yeah, actually we'll see, of
course, because they funded too

{{00:00:36}}
much money these last two years,
you know, the unbelievable tickets

{{00:00:39}}
happened in all over the FinTech.

{{00:00:41}}
So we will see the results of them.

{{00:00:43}}
But after 2023/24, nothing is
going to be same because of the,

{{00:00:48}}
you know, the money limitation is
coming all over the world and the

{{00:00:52}}
regulation is going to be adjust.

{{00:00:54}}
So that's going to be effect
to the fintechs, but we will

{{00:00:58}}
see more fintechs than ever
because of course, digitalisation

{{00:01:03}}
help us, the first thing.

{{00:01:04}}
The globalisation is increasing
because of the supply chain

{{00:01:07}}
problems happen all over the world.

{{00:01:09}}
So B2B payment, Web 3.0, all of
these things needs the fintechs.

{{00:01:15}}
So I think they're going to be
increased every time, and the system

{{00:01:19}}
started to change, the banking
system, I'm not talking about

{{00:01:22}}
the banks, the banking system.

{{00:01:23}}
So we have lots of spaces
for the FinTech still, so we

{{00:01:28}}
will see lots of fintechs.

{{00:01:29}}
And what specific areas
are you currently looking

{{00:01:32}}
to invest in right now?

{{00:01:33}}
Yeah, yeah, right now we of
course focus on the blockchain,

{{00:01:36}}
based on blockchain projects,
but not only the cryptos, you

{{00:01:39}}
know, we are looking to different
use cases using the blockchains.

{{00:01:43}}
And also, we are looking for
the NFTs, because NFT now

{{00:01:47}}
started to have real use cases.

{{00:01:50}}
You know, two, three years ago, we
are just seeing some assets, they

{{00:01:53}}
are selling, buying, selling, but
we are not focusing on that, but

{{00:01:56}}
we are focusing on the, you know,
the CRM projects with the NFT or

{{00:02:01}}
the sports projects with the NFT.

{{00:02:03}}
So we are focusing on the NFT.

{{00:02:04}}
You can call all these blockchain
and NFT, and the crypto and

{{00:02:07}}
the Web 3.0, if you'd like.

{{00:02:09}}
So Web 3.0 is our one
of the focus area.

{{00:02:12}}
The fintech area we are still
focusing on the B2B payments,

{{00:02:17}}
B2B loans and the other different
solutions of the typical banking

{{00:02:22}}
products, new versions of the
typical banking products like BNP.

{{00:02:27}}
So, and of course the other things
that we will see less of vertical

{{00:02:32}}
financial technology solutions.

{{00:02:34}}
What I'm trying to say, like just for
the construction businesses, there

{{00:02:38}}
will be a different FinTech solutions
for the supplier customer relation

{{00:02:43}}
or the worker with the customer.

{{00:02:45}}
We will see this, like in health also.

{{00:02:48}}
Hospital, insurance company,
the doctors and the customers,

{{00:02:52}}
there are lost so of finance
happening between them.

{{00:02:55}}
But we need some vertical solutions,
FinTech solutions for this in that

{{00:02:59}}
vertical, I can say the segment.

{{00:03:01}}
So we are focusing on
vertical financial technology

{{00:03:04}}
solutions with Web 3.0.

{{00:03:07}}
Also an new version of the
typical banking products,

{{00:03:10}}
like, as I mentioned, BNP.

{{00:03:13}}
What stage are the companies
that you're investing in?

{{00:03:15}}
And can you give us any
insight into sort of why you're

{{00:03:17}}
investing in particular ones?

{{00:03:18}}
We are the parts of the Fiba group,
which is the biggest group in Turkey.

{{00:03:21}}
So we have banks in Turkey and also we
have bank in the Romania, Switzerland,

{{00:03:26}}
Germany, Holland, Russia, Ukraine.

{{00:03:29}}
So that's why we focus
on the early stage.

{{00:03:32}}
We have some, you know,
muscles and the, you know, the

{{00:03:35}}
access to help the fintechs.

{{00:03:37}}
With our banking license,
with our credit line, with our

{{00:03:41}}
experts, we are supporting them.

{{00:03:42}}
That's why we are focusing on the
early stage more than the late stages.

{{00:03:46}}
We need to support them.

{{00:03:47}}
Like, as I say, seed and the Series
A, usually we are investing a

{{00:03:51}}
million dollars to $10 million.

{{00:03:54}}
That's the point.

{{00:03:56}}
Yeah, amazing.

{{00:03:57}}
And is there any one particular
type of investment that you're

{{00:04:02}}
like really excited at the
moment to be diving into?

{{00:04:06}}
Yeah.

{{00:04:06}}
Yeah.

{{00:04:06}}
We have three different investments
which are, which looks like regional

{{00:04:11}}
and then get more and more investments.

{{00:04:14}}
One of them is a United Payments which
I attended the same event right now.

{{00:04:18}}
They're working with
four different countries.

{{00:04:22}}
FinTech is a service, with the
model of the FinTech as a service.

{{00:04:25}}
That's the first one we focus on.

{{00:04:27}}
And the second one is the Colendi.

{{00:04:29}}
This is the embedded finance product,
which is right now in the UK, also.

{{00:04:35}}
It's a British company.

{{00:04:36}}
And last one is the invoice financing
companies, which is called Figopara.

{{00:04:40}}
It's a dynamic invoice financing
between the two SMEs that

{{00:04:44}}
finance the invoice, which
is growing very, very fast.

{{00:04:48}}
Consumer behaviour has changed
significantly in the last two years.

{{00:04:51}}
How has that changed how you are
looking at FinTech and innovation?

{{00:04:54}}
Actually, the main thing is, you
know, it was challenging for us

{{00:04:57}}
to do something with the banks.

{{00:04:59}}
So that's the first thing is
changing because new behaviour, we

{{00:05:03}}
never say that okay, if it's not
easy to set up, not easy to use,

{{00:05:08}}
we don't want to use it anymore.

{{00:05:10}}
So that's the first thing the
fintechs has the opportunity because

{{00:05:12}}
banking has challenging processes.

{{00:05:16}}
Now, fintechs give us the
easy to use processes.

{{00:05:18}}
That's the first one.

{{00:05:19}}
The second one is the
accessibility, availability.

{{00:05:22}}
If you want to do something with
the banks, it's challenging again.

{{00:05:25}}
So the fintechs, the embedded
finance, which is really great

{{00:05:29}}
because when I'm doing the commerce,
I can do all the finance issues

{{00:05:32}}
in this commerce place, you know?

{{00:05:34}}
So, and we call it the
accessibility, availability.

{{00:05:39}}
You can do the FinTech banking
whenever you, or whenever you

{{00:05:42}}
want, because you know, you
can not do the minor remittance

{{00:05:46}}
just five years ago, 24/7 hours.

{{00:05:49}}
The banking says, you know, after the,
you know, daytime, you cannot do it.

{{00:05:55}}
But with the fintechs,
with TransferWise, you

{{00:05:57}}
can do whatever you want.

{{00:06:00}}
So the two things is,
easy to use, usability.

{{00:06:06}}
The second one is the, as
I said, the availability.

{{00:06:10}}
The third one is a value for money.

{{00:06:12}}
Which means that I'm not talking
about something is expensive or cheap.

{{00:06:15}}
I'm talking about this asset
deserved this value, this price.

{{00:06:21}}
So it's a value for money.

{{00:06:22}}
You know, the old style, everything
is really expensive or, you

{{00:06:28}}
know, they never looks at it.

{{00:06:29}}
So three main things people
are looking right now being

{{00:06:32}}
available and usability, and
last one is the value for money.

{{00:06:36}}
And outside of the FinTech
space there's a lot of attention

{{00:06:39}}
generally on greener or more
ethical solutions at the moment.

{{00:06:42}}
How does that impact the way that
you guys are looking at companies?

{{00:06:47}}
It's always, it's important for the
investors, you know, the ethical

{{00:06:50}}
things, the compliance, governance.

{{00:06:53}}
But right now, of course we focus
on more the, you know, how your

{{00:06:59}}
companies support ecosystem.

{{00:07:01}}
Not just the ecosystem
of your industry.

{{00:07:03}}
I'm talking about the worldwide or
the human, you know, that everything.

{{00:07:09}}
Most of our companies, they are
focusing on the sustainability,

{{00:07:12}}
we have KPIs about sustainability.

{{00:07:15}}
And we are asking our
investments, what's your KPI

{{00:07:18}}
sustainable to in your business?

{{00:07:20}}
How do you support your ecosystem?

{{00:07:22}}
So that's the new thing we put
on the investments, looking for

{{00:07:27}}
their need KPIs, not just the
financial loans, also this one.

{{00:07:31}}
What would be your biggest tip for
anyone looking to invest this year?

{{00:07:35}}
Actually,  you know, I always
say for this year, you need

{{00:07:40}}
to raise money very fast.

{{00:07:42}}
Because, I just think that the next
year is going to be challenging.

{{00:07:46}}
So if you catch the money, if you
catch the money from smart investor,

{{00:07:50}}
not just the typical investor, we
finish it very, very fast, because it's

{{00:07:55}}
going to be challenging for everyone.

{{00:07:57}}
But, you know, always the
entrepreneur sometimes getting

{{00:08:01}}
confused about raising money.

{{00:08:03}}
They're trying to, you know, always
show that they are a candidate of

{{00:08:08}}
something, they need to choose me.

{{00:08:10}}
They need to choose me.

{{00:08:11}}
No.

{{00:08:11}}
You are an entrepreneur.

{{00:08:12}}
You need to choose your
investor, because you need to

{{00:08:14}}
be very careful because he's
going to be your shareholder.

{{00:08:17}}
So don't try to take money,
it's just the investor.

{{00:08:20}}
You need to see it's the
right investor for me.

{{00:08:23}}
What's going to be benefit for me?

{{00:08:25}}
The next rounds, he's going to be
support me in this different areas.

{{00:08:29}}
Just don't take just money,
take the guys, the investors.

{{00:08:34}}
Well, it's really, it's been
fascinating sort of speaking about

{{00:08:36}}
some of the trends that you're
seeing, some of the areas that

{{00:08:39}}
you see sort of growth happening
that you guys are investing in,

{{00:08:43}}
and sort of hearing some tips.

{{00:08:45}}
So thank you so much
for joining us today.

{{00:08:46}}
It's been an absolute pleasure.

{{00:08:47}}
Thanks.

Entrepreneurs sometimes getting
confused about raising money.

They're trying to, you know, always
show that they're a candidate of

something, they need to choose
me, they need to choose me.

No, you are entrepreneur, you
need to choose your investor.

Well, I'm excited to talk
to you about investments,

and you know, particularly,
global funding for FinTech.

So it's obviously more than
doubled year on year in 2021,

Do you think we will continue to
see similar growth in the pandemic,

or post-pandemic new normal this
year and in 2022 and beyond?

Yeah, actually we'll see, of
course, because they funded too

much money these last two years,
you know, the unbelievable tickets

But after 2023/24, nothing is
going to be same because of the,

you know, the money limitation is
coming all over the world and the

So that's going to be effect
to the fintechs, but we will

see more fintechs than ever
because of course, digitalisation

The globalisation is increasing
because of the supply chain

So B2B payment, Web 3.0, all of
these things needs the fintechs.

So I think they're going to be
increased every time, and the system

started to change, the banking
system, I'm not talking about

So we have lots of spaces
for the FinTech still, so we

And what specific areas
are you currently looking

Yeah, yeah, right now we of
course focus on the blockchain,

based on blockchain projects,
but not only the cryptos, you

know, we are looking to different
use cases using the blockchains.

And also, we are looking for
the NFTs, because NFT now

You know, two, three years ago, we
are just seeing some assets, they

are selling, buying, selling, but
we are not focusing on that, but

we are focusing on the, you know,
the CRM projects with the NFT or

You can call all these blockchain
and NFT, and the crypto and

The fintech area we are still
focusing on the B2B payments,

B2B loans and the other different
solutions of the typical banking

products, new versions of the
typical banking products like BNP.

So, and of course the other things
that we will see less of vertical

What I'm trying to say, like just for
the construction businesses, there

will be a different FinTech solutions
for the supplier customer relation

Hospital, insurance company,
the doctors and the customers,

there are lost so of finance
happening between them.

But we need some vertical solutions,
FinTech solutions for this in that

So we are focusing on
vertical financial technology

Also an new version of the
typical banking products,

What stage are the companies
that you're investing in?

And can you give us any
insight into sort of why you're

We are the parts of the Fiba group,
which is the biggest group in Turkey.

So we have banks in Turkey and also we
have bank in the Romania, Switzerland,

So that's why we focus
on the early stage.

We have some, you know,
muscles and the, you know, the

With our banking license,
with our credit line, with our

That's why we are focusing on the
early stage more than the late stages.

Like, as I say, seed and the Series
A, usually we are investing a

And is there any one particular
type of investment that you're

like really excited at the
moment to be diving into?

We have three different investments
which are, which looks like regional

One of them is a United Payments which
I attended the same event right now.

They're working with
four different countries.

FinTech is a service, with the
model of the FinTech as a service.

This is the embedded finance product,
which is right now in the UK, also.

And last one is the invoice financing
companies, which is called Figopara.

It's a dynamic invoice financing
between the two SMEs that

finance the invoice, which
is growing very, very fast.

Consumer behaviour has changed
significantly in the last two years.

How has that changed how you are
looking at FinTech and innovation?

Actually, the main thing is, you
know, it was challenging for us

So that's the first thing is
changing because new behaviour, we

never say that okay, if it's not
easy to set up, not easy to use,

Expert Insight

Trend

The fintech ecosystem is booming with new players offering innovative, profitable solutions. Investors are looking to get in early on some of the exciting prospects coming onto the scene. 
Hear from the CEO of one of Turkey's biggest corporate venture capital firms, İhsan Elgin, as he shares some of the exciting areas being invested in this year and why you should act quick. 

Web 3.0

Investment

Fintech investing

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thumbnail_MicrosoftTeams-image (3).png

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MicrosoftTeams-image (3).png

İhsan Elgin

Globalisation is increasing because of supply chain issues across the world. B2B payments need fintechs.

Growth in the new normal

As Elgin describes it, "NFTs have real use-cases we weren't seeing a few years ago." He talks us through the hottest areas his company are investing in, what funding stage they're focusing on and why.


Hot spot investing

For venture capital firms like Finberg, changing consumer behaviour has made it challenging to work with banks versus fintechs.
Based on three areas consumers are showing a behavioral change in, Elgin explains why fintechs are often the easier choice to invest in. 

Useability, availability, and value for money

Ethics, compliance, and governance have always been important factors for investors. However, Elgin mentions an additional factor around how companies impact the entire global ecosystem, that investors are keying in on.  

 Investment reaction to the green trend

Elgin leaves us with a few simple tips for entrepreneurs and start-ups looking for investment. 