US VC-backed fintechs in hot water
Funding squeeze threatens to halt early-stage US fintechs
According to Svb.com, 43% of US fintech startups have less than a year’s worth of runway left, as the Venture Capital (VC) slowdown continues to bite. Q3 2023 data revealed that US VC funding hit a six-year low in Q3 2023, and is showing little sign of recovery heading into 2024. To make matters worse, mutterings of a policy interest rate cut in March 2024 by the Federal Reserve could mean US VC investors sit on their hands for even longer, creating further strain on VC-backed fintechs which are desperate for funding.