In an interesting recent article published in GEN Ireland, Deloitte's David Dalton points out that only 3% to 10% of VC investment into Start-Up's has been into Fintech companies, and that is largely down to a lack of Fintech expertise in the VC community.
Ireland needs to remedy this situation- and fast.
Sonny Singh- CEO of BitPay predicts that international VC firms will start recruiting in-house Fintech expertise and that 2016 will be "another record year for VC investing in Fintech".
There's clearly a disconnect here between whats happening on the Emerald Isle and the rest of the world.
Lets be real here- Fintech innovators are developing the nervous system linking every consumer in the world to every financial institution and product/service supplier in the world- Fintech is that important.
Ireland needs Fintech and this train is leaving the Station.
Recent Irish Venture Capital Association (IVCA) figures show that only 3-10pc of an average of €400m of venture capital (VC) funding for start-ups has been invested in fintech companies over the past three years – highlighting an opportunity for such companies to avail of significant untapped VC potential. David Dalton, Head of Deloitte’s financial services practice in Ireland, says that one of the reasons why fintech companies have not secured a bigger piece of the VC pie is the relative lack of expertise of the sector within the broader VC community. “Local VC firms have been very technology focused and have yet to develop specific fintech expertise but that will potentially change. I wouldn’t be surprised if specialist fintech VC firms are established over the next couple of years with larger scale funds and strong international connections,” he says.