Fast forward to 2018, and homegrown companies such as LendingTree and AvidXchange have put the Queen City on the map for financial technology. Roselli, who in 2010 co-founded Packard Place, Charlotte’s original co-working space, wants to promote the city’s developing fintech scene with his latest for-profit venture. Fintech is one of the hottest tech sectors, with more than $12 billion invested in financial-related startups through the third quarter of 2017, according to research firm CB Insights. Queen City Fintech has lined up more than two dozen sponsors, including Bank of America, Wells Fargo and Ally Financial.
Here’s how it works: Startups from all over the world apply to become part of a cohort, usually about 10 companies. The startups each receive a $20,000 grant and space in Packard Place for a year. More than 200 mentors advise the startups, including bankers, business-development professionals, venture capitalists and attorneys. Participants attend a 12-week onsite program, ending with a demo day when they pitch their ideas to potential investors. Partner Extended Stay America, a Charlotte-based hotel chain, provides housing, while American Airlines offers flights. Queen City Fintech takes a 6% equity stake in the startups, standard for business-accelerator programs. The group is now recruiting for its eighth class, which will start in March.
Roselli leads a paid staff of four who are hired through the Venture for America program, a fellowship for recent college graduates who want to work at startups. At its inaugural Southeast Fintech Venture Conference in November, 18 companies from across the Southeast and about 10 startups affiliated with Queen City Fintech pitched their ideas to representatives from about three dozen investor firms. In June, Queen City Fintech will hold its third annual Fintech South conference at AvidXchange’s headquarters.
Charlotte still has a long way to go to catch up with tech hotspots such as Boston, Silicon Valley and Austin, Texas. “We have a lot of later-stage funding,” Roselli says, adding that fewer firms are willing to make riskier early-stage investments.
“A lot of people don’t understand,” he says. “There’s literally a world-class accelerator for financial technology companies in Charlotte.”
Original Post on Business North Carolina By Cathy Martin
