Bondcube, one of a crowd of electronic trading start-ups trying to improve the buying and selling of corporate debt, has filed for liquidation just three months after launching its platform. The start-up, which was founded in 2012, aimed to let
Source: www.ft.com
This is an important news – because we are likely to see much more of these in the future.
Bondcube was one of 30 platforms trying to target the huge market of bond trading. It launched its product 3 months ago, and was liquidated because it couldn’t raise additional funds.
Bondcube raised money in 2012 – a few million pounds I think -, developed its product, launched it, and did not manage to get enough commercial traction.
Many Fintech startups have started during the last 2/3 years and will be in the same situation: they raised funding on an industry-changing idea, created the product, and now find that it’s very difficult to generate revenues at a time where some business angels/VCs will start to suffer losses.
This is happening not just in Fintech (i.e. Homejoy, the Uber of home cleaning, shutting down after $40m funding) but Fintech will be impacted because a lot of the investments have been done in the recent years.
This is of course totally normal that a large proportion of startups will fold, but many had been forgetting this reality the last few years. For entrepreneurs, it means that only the very good projects will be funded – which is welcome news.
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