The key to FinTech startup success?
Fintech startups should Sign-up customers first
For any FinTech startup, the desire to become the industry’s next unicorn is all-consuming. After all, who would turn down millions of dollars of investment? And with over 170 billion dollar companies currently trading, it feels like there’s a very good chance of landing a massive cash injection for your FinTech offering.
But the reality is that although venture capitalists are willing to take some risk when they invest, they expect that risk to be manageable. So when it comes to pitching for funds, they want to see some proof of your performance.
So no matter how shiny your pitch presentation is, or how optimistic your business growth plans may be, investors are most interested in how your business is really performing. In other words, they want to see that people are already using your FinTech service.
Market to customers, not investors
This means that your primary focus for marketing campaigns should be potential service users. If budgetary limitations mean you are forced to choose between pitching to investors, or increasing customer sign-ups, always choose the customer.
On the plus side, the more customers you get on board, the more revenue your business will generate. Which means that you will be able to pitch for a budget increase – providing the extra cash you need to begin the investment pitching process proper.
Where are your prospects?
The biggest headache any marketer faces is lead generation. In fact, generating and converting new leads remains the priority for over 70% marketers.
To help with the challenge of generating new leads, marketers across all sectors are turning to inbound marketing programs, allowing potential customers to control the sales cycle themselves. Not only do customers prefer this hands-off approach, but inbound efforts achieve higher ROI than any outbound campaign.
Best of all, inbound marketing campaigns are self-sustaining, gaining momentum the longer they run. Which means that industry aware FinTech investors may also become aware of your service through your inbound collateral, creating further value from your marketing investment.
Focus on growth, not proof of concept
The other advantage of focusing on growing your user base is that you move away from simply proving your service works. Few investors are keen to fund your proof of concept experiments in the early stages of development – especially if your idea is deemed particularly risky.
Instead, they will prefer to spend money helping your business grow, using their cash to drive improvements and sign-ups. Remember, increased customer subscriptions are much easier for angel investors to ‘believe’ in. And if they believe in your product, there’s a really good chance they will invest their cash in it too.
For more help and advice on attracting customers (and investors) using inbound marketing techniques, please get in touch. Our team are FinTech inbound marketing experts and can help your business achieve the necessary balance between customer sign-ups and investor interest.