DCA’s Approach to FinTech Investment
FinTech companies can operate in a variety of sectors within the financial industry, including banking, market making, payments, lending, asset management, accounting/finance and insurance. DCA is looking at the FinTech sector in relation to these business verticals given the massive disruption that is taking shape.
FinTech companies such as neobanks, online lenders, buy now pay later and other payment platforms are already taking market share from legacy institutions because of their ability to increase access, adoption and engagement / usage. FinTech is democratizing financial services across the board, and consumers are responding positively to greater availability of services, control and savings. FinTech is a massive and rapidly growing market. DCA believes the shift to incorporating technology into financial infrastructure provides the continuation of a strong growth tailwind that will permeate throughout every industry and provide ample opportunity for early stage investment.
DCA's Crossover Strategy
Crossover investing is a key trend across the capital markets and an important component to DCA’s approach to AI investment. Put simply, a venture capital crossover fund is one that invests in both private and publicly traded companies, such as funds that hold onto some or all of their portfolio companies after they go public. DCA fully expects crossover investing to be a long-term trend that will play a prominent role in shaping the future of venture capital for a variety of reasons.
More Liquidity
Longer Investment Lifecycle
Diversification
Shorter Lockups
