Corporate Finance Technology is a relatively new subarea within FinTech that has virtually no pure play Corporate Finance start-ups. Instead, many start-ups offer solutions to help existing Corporate Finance companies optimise their current operations, but this approach tends to drive evolutionary change rather than FinTech’s typical disruptive change.
Corporate Finance has a stated goal of Maximising Shareholder Value and attempts to achieve this by helping companies raise funds, manage their capital structure, and acquire or merge with other companies.
FinTech’s focus is on creating new value propositions or improving existing ones, usually with the aid of cutting-edge technology like Automation, Open Banks, Smart Contracts or Artificial Intelligent (AI).
Both are complementary; therefore, it would appear logical for a CorpFinTech to be looking for a new value proposition that maximises shareholder value and deliver it using advanced technology.
However, most B2B FinTech is focused on solving payments, remittance, peer-to-peer lending, and equity crowdfunding issues, with very little focus on solving the more complex front/middle and back-office problems that Corporate Finance typically encompasses.
Does that mean FinTech can’t be applied to Corporate Finance? Corporate Finance is very relationship-driven business, with customers preferring to work with a known and trusted brand irrespective of how well they perform.
This means that takes a long time for a new entrant to establish itself as a credible corporate finance player and therefore suggest this is the reason that as of today there are very few Corporate Finance FinTech’s.
Instead, what you are seeing is the traditional players, like Investment Banks, M&A Advisory firms slowly adding digital services but not disrupting themselves or the sector by creating new value propositions.
M&A Deal Platform - The first real CorpFinTech?
We see ourselves as been one of the first pure play CorpFinTechs, attempting to challenge the existing comfortable world of Corporate Finance by building a multi sided platform (MSP) to connect company owners directly with partners, buyers, and our own digital advisory services to help SMEs with M&A, management buyout and raising capital.
Contact us directly or Schedule a Meeting if you would like to learn more about our CorpFinTech Services.
