Hogan Lovells to fund women-led FinTechs

The Program is open to FinTechs at any stage of development, from start-ups to more established growth players. Interested businesses, particularly in the areas of banking, lending, payments, insurance, investments, and sustainable finance, are welcome to apply throughout 2021 for complimentary or subsidised support from Hogan Lovells. The firm is committed to empowering the women-FinTech community, and is aiming for at least half of successful applications from women-led FinTechs.

Globally, just 3% of FinTechs were founded by women as of 2019, according to Deloitte Insights published in October 2020, which also found that funding for FinTechs founded or co-founded by women was significantly less than for men. Innovate finance reported in January this year that women founded FinTechs accounted for 17% of the UK’s total FinTech venture capital investments over 2020, up 6% from 2019. Yet KPMG’s UK FinTech Focus 2020 found that women founded FinTechs are more resilient to the pandemic, with more in cash reserves.

Commenting, Hogan Lovells Head of FinTech and Innovation Emily Reid, said: “What we are seeing is that, despite the challenges of the pandemic, women-led FinTechs represent a well-run and competitive investment proposition. However the levels of investment remain nowhere near on a par with men-led counterparts. We recognise their potential and hope to harness it through our Global FinTech Mentor and Momentum Program this year, empowering women-led FinTechs to grow and achieve a greater share of the market and investment.”

Launched at Innovate Finance Global Summit (IFGS) in April 2017, the successful Program is entering its fifth year. To date, Hogan Lovells investment has totalled over a million pounds in support of around 25 FinTechs; providing each with up to £25,000 in free legal services, together with a 30% discount to the free advice, to make it go further. This is in addition to the same discount on advice provided after or outside the scope of the program, as well as access to industry events and networking opportunities with the firm’s existing clients in the FinTech space.

Hogan Lovells Head of Financial Services Regulation, Rachel Kent, said: “We offer more than just legal advice through our Global FinTech Mentors and Momentum Program, we share our extensive industry knowledge, our connections, content and tools to help the selected applicants launch, expand and succeed within a complex regulatory framework that is constantly evolving and can be tricky to navigate, but is essential for a long term sustainable business.”

Those selected are assigned a dedicated relationship manager who will ensure they receive maximum value from Program membership by guiding them through the suite of support options on offer:

• Commercial insight on how financial services businesses can successfully launch and scale-up
• Access to the firm's cross-border FinTech network
• Networking with current and previous mentees
• Training opportunities through a host of firm and industry events
• A package of affordable corporate and regulatory advice, from contracts, compliance and collaboration agreements to employment law, fund raising and structuring
• Guidance on the financial services regulatory landscape for FinTechs post-Brexit
• Free or subsidised access to the firm’s suite of LawTech tools offered on Hogan Lovells Engage, including the Consumer Credit Academy, PISP/AISP Authorisation Toolkits, Payment Services Academy and Blockchain Tools, among others while on the program
• Support from Hogan Lovells Consulting team for regulatory advice on everything from authorisation to building a scalable compliance framework.

Hogan Lovells is ideally placed to provide this support, long positioned at the heart of the FinTech industry. The firm advised on the establishment of the UK's first internet only bank; on the launch of Zopa – the world’s first peer-to-peer lender; and of a mobile P2P payments service – the first of its kind in the UK market. Head of Financial Services Regulation Rachel Kent co-chaired the policy and regulation chapter of the recently published UK FinTech Strategic Review, in February 2021.

More details on the Program and how to apply can be found here.

Notes to editors

Previous and current members of Hogan Lovells Global FinTech Mentors and Momentum Program include:

Banked: Open banking powered B2B platform to allow non-Financial Services businesses to embed financial data into their products.

Bankof: Provider of P2P personal loans.

Bloom: Provider of business cash advances to merchants.

Capexmove: Provider of blockchain solution for the execution of securities contracts.

Cleo: AI powered personal finance manager.

Covertech: App-based modular lifestyle insurance platform.

Dozens: Mobile banking and wealth management provider.

DualityBanx: Banking and investment services start-up solution for those that live, work and spend in multiple currencies.

Edbridg: Enables students to finance their schooling using income share agreements instead of traditional loans.

Exate: Blockchain powered data privacy solution provider.

Flexy (Pivotal Group): E-commerce platform and mobile app designed to help consumers manage, discover and switch between subscriptions with access to personalised offers.

Floww: Platform to simplify data and due diligence aspects of investing in start-ups for entrepreneurs, venture capital firms and investors.

Fronted: Start-up offering loans to cover rental deposits.

Fygo: Innovative automatic student rewards app.

General Internet: Credit and banking platform catering for business loans and moving towards becoming a networked business bank and open FinTech platform.

Moneyfold: Regulated financial services firm which uses public blockchains including stablecoins, FX services, Tokens and distribution of financial services.

Rodi: High value items insurer.

Solidatus: Singapore-based app that allows an organisation to rapidly discover, visualise and understand their data flows.

Thunes: B2B cross-border payment network which enables both emerging and developed markets to move funds seamlessly and in real-time.

Updraft: Overdraft replacement app that will provide low interest loan facilities and debt reducing nudges to customers.

WeCovr: Insurance-as-service platform providing turn-key on-demand coverage via apps and API's to companies and individuals.

Winvesta: Cross-border wealth management and investment platform.

Youtility: Money and budgeting app that brings home finances into one place, allowing users to budget, compare, switch and pay providers all in-app.