Early-stage ventures are still able to raise money from investors, despite the knocks the corona virus has caused the economy. In fact, the dismal economic situation’s pressure on valuations could make it easier for some fintechs and start-ups to attract growth funds.
Case in point is Preezie, which supplies e-commerce back end solutions to online retailers. CEO and founder Michael Tutek has just raised $575,000 from venture capital firms Skalata Ventures and Silicon Balls and several high net worth angel investors. But he acknowledges while his business is in a sweet spot and able to raise money, the market has changed.
The news comes after a successful $33m fintech launch as a competitor to established mortgage providers by two former Westpac executives.
The start-up, called Verteva, has raised all of the money from New Zealand-based Bolton Equities and is looking to target a similar market to Athena Homeloans, which raised $70 million in October.