5 principles about which it is important to know to every founder of a technology startup

In the previous article , which became the first material in the cycle of publications devoted to the peculiarities of the development and development of FINTECH startups, we listed 10 industry trends that it is useful to know for the funder of any FINTECH project.



In today's release, PayOnline , a specialist in automating online payment, decided to go beyond the fintech industry and talk about 5 important principles, compliance with which will help to gain a strategic advantage in bringing any technology startup to the market.



Release 1. 10 trends in the world of fintech, which is useful for startups to know

Release 2. 5 principles about which it is important to know to every founder of a technology startup.

Issue 3. Excursion to the world finteh hubs

Release 4. The global range of fintech accelerators

Issue 5. Russian and foreign platforms for attracting collective funding



Do not overestimate the speed of adoption of the project by customers. When developing the perfect product, startups often forget about their end users. This is the cause of the difficulties associated with attracting customers after the launch of the project has already taken place. Often there is a situation in which digital start-ups spend more time and resources on teaching their target audience how exactly their project solves the problem of a given Central Asia. The founders of a startup should concentrate on developing a product that will not only function perfectly, but also ideally solve a specific problem or set of problems for its users. You can use the Customer Development methodology to help you. The author of this idea, Steve Blank, has written a very good detailed book, The Founder's Handbook.

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Think big. If a product can function perfectly in a certain place, there is no guarantee that the same product will work just as smoothly in other places. With limited resources and connections, startups tend to focus on their technology solving local problems. Only a small part of the founders from the very beginning draws attention to the prospects for business development throughout the world. To develop your startup, plan a place that allows you to scale the project on all continents.



Follow the "smart" money. Since many young startups either exist due to self-financing, or receive support from friends or family, there is a clear lack of “smart” money at the early stage of development of these projects. This means that the founders of startups at first lack support from industry experts who can push the project to a new level, as well as help to cope with the above-mentioned problems.



Develop a marketing strategy / plan for market entry. Having only high technology is not enough, while a good marketing strategy is crucial for a business. Often, the founders get stuck on the development of their product and completely forget about its development. The project can be monetized if marketing will do its job.



Examine the regulatory side. Depending on the characteristics of a particular market, the project founders find it difficult to reach the right people in banks or representatives on the side of the regulator. And yet, startups founders should try to find such contacts as early as possible in order to receive valuable feedback, especially from representatives of the regulator. So project teams will be able to better understand how they can squeeze through the regulatory framework. If we consider Fintech-start-up as an example, then there is no need for such a project to resist the banks. Instead, on the contrary, you should find out how a startup can strengthen the banking sector.



From the point of view of legal regulation of FINTECH industry, solutions that help FINTECH projects around the world meet the requirements of regulators deserve special attention.



The combination of such decisions has already managed to get its own neologism - RegTech, formed from the phrase regulatory technologies. This relatively new term applies to technologies whose activities are based on ensuring compliance with legislation through innovative solutions. Due to the variability and complexity of legislation, RegTech solutions tend to be very flexible. If most other types of technologies are developed with an eye to durability, then RegTech representatives cannot afford the luxury of a static and unchanging tool - their designs must be capable of learning.



Another characteristic feature of RegTech is the use of cloud technologies that allow you to safely store and work with data remotely. Thus, RegTech significantly reduces costs for both suppliers and customers, and also eliminates the need to spend resources on developing and implementing their own solutions. The ability to make quick changes leads to increased flexibility and speed, which allows for a high level of control over information. In addition, regulators place high demands on technology companies in the field of information security, so encryption has become one of the main tools for RegTech to ensure data security.



RegTech is already well-known, including investors, who are looking at interesting solutions in this area. Often, legal requirements and the need to implement controls within a company put a heavy burden on financial institutions, depriving them of the possibility of rapid development and introduction of innovative technologies. Since RegTech has all the chances to solve the above problems, we are likely to observe the formation of a new global industry comparable in scale to the Fintech industry.



That is why Fintech startups, in turn, should not only follow the 5 basic principles listed at the beginning of the article, but also be aware of the latest RegTech technologies that can make life easier for startup founders, removing a lot of issues from their shoulders compliance with the law.



Continue to follow our posts - in the following materials of the cycle you will be able to learn about the features of the world fintech hubs, the global accelerator ecosystem, as well as trends in the development of fintech industry in Russia. The article was written using materials from the LTP portal.