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5 Predictions for 2020

Tomasz Tunguz

Here are my 5 predictions for 2020. The direct listing becomes the standard way for startups to go public in 2020. And incumbents desire as much of that as possible for themselves. In it, 65% of founders believe the fundraising market in 2020 will present more challenges than 2019. Distributed becomes the norm.

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Fintechs could see $100 billion of liquidity in 2021

TechCrunch

In 2020, all the long-term trends forcing change in this sector continued and even accelerated. Public fintech stocks rose 97% in 2020. For the fourth straight year, the publicly traded fintechs massively outperformed the incumbent financial services providers as well as every mainstream stock index. Second, liquidity.

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The Duolingo English Test

A VC: Musings of a VC in NYC

The “incumbent provider” of English proficiency tests, Test Of English As A Foreign Language (aka TOEFL), has had all of the companies and universities who accept it locked up for many years. But in some markets, incumbency matters more than better. It is two sides of the same coin. It costs less ($49 vs $205).

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Monzo Makes Money Work For Everyone

Y Combinator

In April 2020, British banking startup Monzo’s revenue fell by almost 50%. 2 Incumbent banks miss the mark in two crucial areas: The banking experience has not evolved to match modern consumer. When they joined, Monzo was generating $69M in revenues (in April 2020). expectations. to expect.

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Why fintechs are buying up legacy financial services companies

TechCrunch

It used to be that if you were a fintech startup or, for lack of a better term, a digitally native financial services business, you might be eyeing an acquisition from an incumbent in the industry. But lately, fintech upstarts are the ones doing the acquiring. But lately, fintech upstarts are the ones doing the acquiring.

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Booz Allen Hamilton launches $100M corporate venture arm focused on early-stage startups

TechCrunch

Excepting breakouts like Anduril and Palantir , most contracts are awarded to incumbents — more than 95% of Booz Allen’s nearly $8 billion in revenue comes from government contracting — and any startup that gets a foot in the door has to bridge the gap between the R&D phase and the contract award.

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Debt versus equity: When do non-traditional funding strategies make sense?

TechCrunch

” Despite the VC flurries of 2020 creating an ecosystem of seemingly endless equity, it’s important for entrepreneurs and founders to understand that there is no one-size-fits-all model for raising capital. People tend to think that category creation is less risky than incumbent disruption.