Fynsa
Technology is an essential part in our daily lives. It’s becoming an increasingly integral part of our lives, from a phone call that connects us with our loved ones to a robot that helps us with cleaning.
We also see that the list of new technologies is growing every day. Robots, augmented reality, and algorithms, among others, help people with a wide variety of tasks. These technologies are far-reaching and transformative because of their potential to change businesses and people’s lives.
However, as new technologies are developed, an important question arises: Could it be that technology is making us obsolete?
There are various points of view on this matter. Although there will always need to be someone to develop, manage, and oversee these technologies, there are those who see them as a direct threat to their jobs. Many jobs may tend to disappear due to technological advances, but at the same time, these advances will create new positions, such as big data and data mining analysts, network administrators, IT professionals, systems technicians, among others. In a few more years, work may have changed, but people will still be needed to manage the digital world.
Given this situation, we must view progress as an opportunity. This is how so-called “fintech” have managed to thrive amid this constant change, taking advantage of every advancement and incorporating it into their daily operations. These companies use technology to improve or automate their financial services and processes, ranging from alternative financing platforms for businesses and apps for financial education and wellness to fully digital banks.
Although this sector is relatively new, it has experienced exponential growth in recent years, despite the difficulties Fintech companies face in securing funding during their early years. This has led to the emergence of a new financing model: at-risk debt (known in English as venture debt). This involves providing funding to fuel the company’s growth, with the risk assumed from a venture capital perspective, based on the significant growth potential that this type of company possesses. An important point to note is that, unlike bank loans, venture debt can be a viable option for companies that do not yet have assets to use as collateral or a positive cash flow. This financing is provided through the acquisition of assets originated by these companies, which allows them to have the resources to continue providing financing to individuals and/or small and medium-sized enterprises (SMEs).
That is why at FYNSA we are committed to progressand to conscious growth that supports this new market, recognizing that technology and human capital go hand in hand. This continuous technological development improves the lives of thousands of people, and at FYNSA, we want to be part of that. Our FYNSA Latam Venture Debt Fund supports seven originators, providing new financing opportunities to various fintech companies and, in turn, allowing our investors to invest in various private debt assets in the Latin American and U.S. markets, promoting asset diversification and, consequently, reducing the risk associated with this type of investment.
