We identify a16z's top fintech priorities across payments, blockchain, banking, and more.
The fintech sector took a hit in 2022 as investors cut back on investments amid market turmoil.
However, some of the major investors, such as Andreessen Horowitz (a16z), remained active in the sector across various phases of trading, valuations, geographies and sub-industries.
Fintech is central to a16z's investment strategy. In recent years, the company has not only strengthened its presence in more well-known sectors, such as banking, but has also ventured into newer territories, such as blockchain.
Of the 206 deals a16z participated in last year, almost a quarter went to fintech companies, more than any other sector. 60% of these financial technology investments were closed in the first half of 2012, and the remaining 40% in the second half.
Here's a look at a16z's top three fintech goals for 2022, including top deals in each category.
Payments
More than a quarter (28%) of a16z's fintech investments in 2022 went into the payments category. Among the most notable investments are:
- SpotOn (300 million dollars Series F): SpotOn offers a cloud-based platform that provides payment solutions for restaurants and small retailers.
- jeeves ($180 million Series C): Jeeves offers corporate cards and other expense management tools for businesses, with a focus on credit rails and cross-country and cross-currency payments.
- Tally Technologies ($80 million series C): The Tally app helps consumers pay off their credit card debt faster by automating payments.
Blockchain
a16z He has been actively investing in companies developing blockchain platforms for years. In 2022, 22% of its fintech trading volume went to blockchain companies, though most of these deals were closed between January and June, ahead of the year-end turmoil that rocked cryptocurrency markets. Notable investments include:
- MatterLabs ($200 million Series C): Matter Labs is an Ethereum development company that is building a Layer 2 network designed to reduce fees and speed up transactions.
- lights park ($175 million Series A): Lightspark, launched in May 2022, is building a Bitcoin payments tool.
- NEAR Protocol ($150 million Series B): NEAR Protocol is developing a platform for blockchain-based decentralized applications, with a strong focus on Web3.
digital loans
The third most popular fintech category for a16z in 2022 was digital lending, which accounted for 12% of the firm's fintech deal stream. Notable investments include:
- Point Digital Finance ($115 million Series C): Point offers a lending marketplace that allows homeowners to borrow against a percentage of the future value of their property.
- Valon ($60 million Series B): Valon offers residential mortgage loan servicing technology through a cloud-native platform.
- Vesta (A league of 30 million dollars): Vesta offers a platform for mortgage origination and underwriting that is designed to streamline processes, reduce risk and help lenders improve their business portfolio.
