Immerse yourself into a skyrocketing and flourishing field of neobanking venture capital industry to carve out a unique slice of untapped industry potential and learn about possible obstacles and ways to stand out in this highly competitive realm.
Fueled by the rising need for financial inclusion and the popularity of digital payments, neobanks are on a fast track to redefine traditional banking. Neobanking is revolutionizing the financial landscape, offering digital-first, user-centered banking experiences that resonate with today’s tech-savvy consumers and provide bountiful opportunities for new market entrants. But…
Startups should be ready to navigate complex regulatory waters. Adherence to financial standards such as AML and KYC is a must for both traditional banks and neobanks. And it requires a complete understanding of the financial domain and substantial funds infusions.
Although 2022 became a record-breaking year with a catch of $132B in funding, venture capitalists’ pockets, while deep, are not bottomless. Plus, the lack of physical assets makes investors more discerning and selective in their choices. Thus…
Having created 100+ practical business blueprints and market entry plans, assisted 50+ companies in M&A scouting, and secured $2B in fundraising, at Waveup, we know how to guide your startup from seed to harvest. Let’s check our neobanking market research to see what this field has to offer.
The neobanking industry is projected to skyrocket from $66 billion to $2.2 trillion in 2030.
The anticipated number of mobile banking users by 2025.
is the average amount a neobank user can save per year.
is the estimated number of neobank users by 2025.
is the forecasted global digital payments volume by 2025.
Every 7th representative of Millenials and Gen Z use neobanks.
Primary verticals the funds are flowing to:
Fueled by the urge to invest in marketing, technology, and customer loyalty, startups require substantial financial infusions. But without physical assets, neobanks are like a ship without an anchor, left adrift in the turbulent seas of capital fundraising. In their quest for growth, they may find themselves caught between a rock and a hard place as investors may refuse to back a bank without physical presence, as it happened to Monzo, a UK-based neobank, which lost 40% due to funding turbulence during covid-19.
Complying with specific financial regulations such as AML and KYC is like walking on a tightrope. Comprehending and navigating the following regulations is both time-consuming and expensive, with any mistake leading to penalties, legal issues, and loss of customer trust.
In the battle for the hearts and wallets of customers and investors, traditional banks, with their long-standing physical presence, have a head start and seem to outrun the digital newcomers. Winning customer loyalty for neobanks is like trying to catch the bus that has already left – challenging, time-consuming, and expensive, yet not entirely out of reach. And with excellent customer services, robust security, and clear communication, new entrants can cement their market position.
From diligent industry analysis to storytelling and financial forecasts, we’re helping founders crystallize and structure key business fundamentals and translate them into a compelling investment opportunity framed in a winning neobanking pitch deck.
Evaluating potential investments, conducting due diligence, and supporting portfolio companies on their new fundraising rounds.
Discovering market opportunities in the market and developing execution strategies to build actionable and scalable blueprints for growth.
WHO WE ARE
Neobanks are appealing to potential investors because they emphasize social responsibility, ethical banking practices, and sustainable growth models.
In 2022, the neobanking market constituted $67B, projected to expand at a yearly growth rate of 54.8%. The ongoing trend towards digitalization and an evolving consumer demand for more personalized and convenient banking services offer significant potential for new neobanking startups.
Lack of physical assets and regulatory struggle make fundraising for neobanking startups challenging, but a clear differentiation strategy, robust business model, and evidence of market traction make it possible. Plus, with a persuasive neobanking pitch deck and proactive investor engagement approach, the process will be much smoother.
Project complexity and our ongoing tasks determine the time of completion. Usually, it takes us from two to three weeks, yet up to a month in complex cases. That’s why each case should be discussed separately.
Mostly, neobanking pitch decks lack coherent investment narration. The bulk of pitch decks don’t answer the most important question—why they chose exactly this market and exactly now. Plus, they fail to show traction, robust go-to-market strategy, and relevant information, being usually overdosed with technical concepts.
Funding hurdles, competition, and regulatory concerns are the main issues within the neobanking industry. Nevertheless, companies with a strong market strategy and an ability to communicate the value of their proposition and to solve the legal-related dilemmas can overcome all the challenges.
The field is growing fast, with 250+ neobanking startups opened recently, the neobanks offers are diverse, the traditional banks are entering the digital space… All of this ignites the rivalry, making neobanking a highly competitive domain.
We assist investment funds in carrying out comprehensive due diligence of the prospective neobanking projects to help decide whether the opportunity is worth investing. We also provide end-to-end fundraising support to the partner fund’s portfolio companies.
Sure thing! We can help detect and assess new M&A opportunities, support initiatives by devising CIM documents, valuing companies, conduct modeling for buy-side and sell-side transactions.
Yes, we can help you contact neonanking VSs if your project meets the requirements such as round size, team, product, etc. This service is a part of our comprehensive investor relations package, which includes creating a pipeline of investors interested in neobanking, preparing founders for the intro meetings with them, fostering post-deal communication, etc.
Absolutely! Our analysts provide customized market intelligence on the neobanking market, including industry reports, competitive analysis, and market research to set you up for success. We leverage reliable proprietary data sources to help you get a full grasp of the neobanking landscape, including things like market’s size, diversity, and competition.
Our proficiency lies in guiding projects from the Seed to Series B growth phases within the neobanking industry. Moreover, we support companies in pre-seed and Series C+ stages and also engage in collaboration with established firms and investment funds.
Fuel your next stage of growth with Waveup—your one-stop shop for fundraising support, outsourced neobanking M&A advisory, growth strategy consulting, and presentation design. Leave your email, and let’s chat!