Xalles Capital, a wholly-owned subsidiary of Xalles Holdings, is creating a virtual growth center for fintech firms.
Many small fintech companies are searching for assistance to grow from startup or seed financing to mid-tier financing and ultimately achieve a major financial event. Along the way those firms require access to capital, business development assistance, networking and help to grow their businesses. The Xalles management team is searching for qualifying fintech candidates to add to Xalles’ asset portfolio as well as receiving numerous inquiries from fintech start-ups. Businesses that are not yet mature enough to meet Xalles’ acquisition specifications will now have the opportunity to be a part of the new fintech growth center program, which can assist and nurture those companies, while guiding them on a pathway for a key financial event such as an initial public offering merger or acquisition.
The global fintech market is approximately $200 billion in size and has a 25% annual growth rate. There are going to be an estimated 20,000 new fintech startups in 2020 alone. Throughout 2019, 24 fintech companies achieved unicorn status. Despite this market size, many fintech firms fail each year. The primary causes can often be attributed to being underfunded, having the wrong investment partners, developing the wrong business model or neglecting compliance issues. Some businesses are stagnating and unsure of how to take the next step, are not ready for the next investment or simply need help to better develop their value proposition. These types of companies are candidates for the fintech growth center program.
The fintech growth center will offer fintech companies from around the world the opportunity to learn about a few proprietary roadmaps to lead them to a new financial level. These roadmaps are supported in the growth center through education, networking, capital access, business development and shared services resources, all delivered remotely.
The new website, program qualification and application process will be announced soon. The fintech growth center program will partner with existing incubators, accelerators, angel networks, investment firms and global sales organizations to expand the pipeline of firms that could be part of the Xalles’ fintech ecosystem. Xalles Capital also will leverage its new tokenization strategy and develop a token through an STO that will be used to reward companies within the fintech growth center and provide an enhanced solution for those program companies to use in their business.
Xalles expects the fintech growth center program to grow and eventually become its own corporate entity, but in the short term it will be launched as a business unit within Xalles Capital. This business unit will grow revenue and assets through the program while not requiring small businesses to pay for services up front. Xalles Capital expects between 10 to 20 companies to be admitted to the program during its first year and expects to generate $20 million in value to Xalles during the first three full years of operation.
“While Xalles today enjoys a healthy pipeline of businesses looking to be part of the Xalles family of companies and gain synergies, very few are selected for that type of acquisition. The fintech growth center will allow us to cultivate a larger group of smaller companies that could be developed into ideal Xalles acquisition candidates,” Thomas Nash, CEO of Xalles Holdings, said. “We plan to control our own destiny by helping fintech firms around the world grow and have exit events that are profitable for Xalles and the companies themselves. Xalles Capital is launching with a business model that will make this fintech growth center program the go to place for fintech companies.”
Xalles Capital will be announcing the growth center’s new website, program qualifications and details in the coming weeks.
Xalles Holdings is a holding company that focuses on acquisition and support of fintech companies.
