VC Predictions: Where are investors most bullish in 2020?

By Oliver Smith on Tuesday 7 January 2020

Alternative LendingDigital BankingSavings and Investment

In Part 1 of our VC Predictions series we look which sectors three venture capitalists are most bullish about.

VC Predictions: Where are investors most bullish in 2020?
Image source: Image by Collin Weaver from Pixabay

The world of finance is all about making predictions on where the market will go next, so who better to ask for 2020 predictions than three VCs well-versed in fintech investing.

Tim Levene of Augmentum Fintech has backed the likes of ReceiptBank and Tide, Josh Bell of Dawn Capital leads the firm's fintech investments in startups like iZettle and Divido, and Rob Moffat of Balderton Capital sits on the boards of Cleo and Wagestream.

We asked these three investors three questions about where startups and fintech is heading in 2020. Today in Part 1 we ask:

Which sector are you most bullish about in 2020, and why?

Tim Levene, CEO, Augmentum Fintech

We remain bullish about Fintech as we are simply so early in the cycle still. 

Finance is a multi-trillion dollar industry that is years behind other industries that are a fraction of the size, and yet have built multiple £1bn+ technology companies.

Josh Bell, General Partner, Dawn Capital

A lot of headlines have been generated by the success of consumer-facing fintech players, but we've seen a marked increase in interest and capital allocation from VC and growth investors towards less glamorous fintech infrastructure. 

There's been an increasing realisation that existing financial services organisations will continue to be dominant in the market, so long as they can reduce their time to innovate and improve customer experiences. 

They're increasingly working with external cloud-based technology providers to achieve this, and so I think this will be the year of digital banking platforms and middleware technology providers supporting retail and SME banking propositions.

Rob Moffat, Partner, Balderton Capital

Insurtech. Companies such as Zego, Root, Alan and Lemonade are really scaling now, but there is still so much more to go after.

Come back tomorrow as we ask our three VCs: If you had to make one specific prediction for 2020, what would it be?

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