Trend Opportunity Profiles—Alternative Funding Mechanisms Driving the Start-Up Economy

This series gives an overview of the recent developments and transformative trends developing globally as an alternative funding mechanism driving the start-up economy. It creates direct opportunities for companies in sectors such as ICT, business and financial services, health, medical devices and life sciences, supply chain and logistics, retail, food, and agriculture.

This trend opportunity profile offers exemplary case studies and growth opportunities that represent the strategies and trends driven by start-ups and neobanks, being considered by legacy financial intermediaries to stay relevant to the upcoming population segment while ensuring sound financial instruments and risk mitigation frameworks. Factors such as digital-first architecture, blockchain, anti-money laundering regulations, decentralized finance, application programming interfaces, metaverse, and artificial intelligence-powered underwriting, risk management, user-profiling, and transaction monitoring are driving these innovations. The consumer demand for decentralized solutions is also driving these innovations, leading to an overhaul of the scope of financial services.

This report guides businesses to incorporate trends such as revenue-based financing, crowdlending platforms, metaverse financing, robo-advisory, and decentralized exchange.