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Capital Scarcity facing Fintech Companies

Oaknorth, the succesful UK challenger bank has issued a stern warning by its CEO Rishi Kosala. The CEO warned that ““If you look at the funding environment we’ve been in for the last few years, there’s been excess capital availability. Businesses like OakNorth have been able to raise significant sums of cash and the supply/demand equation has generally been in favour of the entrepreneur,” following with “If you look at what’s happened now however, investors are retreating and focusing on managing existing portfolios and taking care of their existing exposures, so you’ve now got capital scarcity.”

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