Index Ventures Sees Fintech Opportunity in Consumer Finance and Infrastructure
Index Ventures partner Mark Goldberg compares the current fintech fundraising environment to a hangover after last year's party, noting that his firm is actively investing in the next generation of financial technology companies.
Index Ventures partner Mark Goldberg describes the current fintech fundraising environment as a hangover following last year's party, highlighting that the industry is now grappling with the excesses of the previous boom. Despite the downturn, his firm is actually increasing its investment pace to back what it believes will be the next generation of fintech leaders.
Goldberg reveals a strong focus on fintech infrastructure, noting that his portfolio includes five or six "picks and shovels" companies that offer resilience during volatile market conditions. These behind-the-scenes businesses provide stable foundations compared to more consumer-facing alternatives.
In a contrarian move, Goldberg also spends significant time exploring early-stage consumer finance, a currently unloved subcategory of fintech alongside crypto. He believes this exact unpopularity creates a massive opportunity for investors willing to look past the current hype cycle and focus on the future of how people manage their money.