While there are a number of growth markets in the world, few of these are expanding at the same rate as the fintech space.

In fact, a staggering $17.4 billion in venture capital was invested into this market at the end of 2016, while this number is set to increase further in the future.

The growth of this market is delivering huge benefits to business-owners, particularly those in the technology space. In this post, we’ll look at some cutting edge financial solutions that are available to tech firms in the middle age.

1. Invoice Finance Systems

One of the biggest issues facing tech firms is the cost of starting up, with companies often required to sacrifice huge amounts of equity in order to secure funding.

This can be debilitating to smaller tech firms, who would be better served by sourcing money through invoice financing. This is the process through which firms sell their accounts receivable to a third-party investor, before repaying this short-term debt once the client has settled their invoice.

Online platforms such as Touch Financial have revolutionised this space in recent times, by connecting firms with lenders in a digital, real-time marketplace. They can also tech firms to highlight specialist lenders within their niche, helping them to access better and more suitable terms in the process.

2. Online-only Insurance Firms

2017 saw the emergence of China’s first online-only insurance firm (ZhongAn Online Property and Casualty Insurance), and this is part of a wider trend that is set to take hold in the coming years.

This particularly firm and its associated platforms are aimed at tech companies, who are looking to simplify the insurance industry with an accessible, digital solution.

The key selling point here is the use of big data and intuitive analytics, with a view to determining competitive product prices and controlling risk.

This is pivotal in the technology space, where high risk and overheads can have an extremely detrimental impact on businesses. 

3. Digital Payment Platforms 

Tech firms can also benefit from digital payment platforms, particularly those that operate within the e-commerce space. 

Firms like Ant Financial offer a relevant example of this, with its own platforms having underpinned a market capitalisation of $60 billion and established its creators as the most valuable fintech company in the world. 

Digital payment platforms allow for real-time transactions that are beneficial for all parties involved, including brands, clients and customers alike. 

So, as digital payments continue to supersede the use of cash, tech firms will become increasingly reliant on virtual platforms and the benefits that they offer.