With over 200 fintech/insurtech investments in 26 countries, including Credit Karma, Stripe, Grab, RealtyShares and Simple (acquired by BBVA), CBInsights recognizes 500 Startups as the world’s most active early- stage investor in the transformation of financial services since 2012.
Our unique high-volume approach investing in, and accelerating, both new financial services and enabling technologies may substantially benefit from the creation of an Industry Sandbox as proposed:
• Faster investment decisions and more investment: Cost of compliance and regulatory uncertainty is a key concern when we consider making investments in early stage financial services companies. A program that makes those costs / risks more transparent earlier in startups’ lifecycle makes it easier for us to assess a company and teams’ potential, possibly leading to faster and more investment decisions.
• More collaborations between startups and incumbents: A properly organized sandbox program can reduce the cost of exploring collaborations, thereby increasing the likelihood that startups we invest in can accelerate their growth by partnering with incumbents. This can be achieved by both giving startups access to institutional data or reference architectures and by reducing regulatory uncertainty for both startups and incumbents.
• Potential of alignment with other global sandboxes: As an investor, we are not generally interested in investing in companies that may have a relatively transparent go-to- market in one country (UK) and a far less certain go-to- market in other markets. A virtual platform giving our portfolio companies access to global sandbox assets will assist access to foreign markets, and a forum providing transparency in regulatory approaches of other regulatory bodies/sandboxes will help reduce the uncertainly around regulatory impediments to global growth opportunities.Download Case study