Amid slowdown in FinTech funding, Intuit wants to continue helping startups scale.
International FinTech platform provider Intuit has launched the third edition of its Toronto-based Prosperity Accelerator.
In collaboration with venture capital firm Highline Beta, the Prosperity Accelerator is an equity-free program created to support startups whose mission is to improve the financial prosperity of consumers and small businesses. The four-month program is focused on startups based in the Greater Toronto Area.
Selected participants are promised access to Intuit’s corporate and investor mentorship network, coaching, and the opportunity for follow-on investment from Highline Beta. The program is accepting applications until January 13, 2023. Six to eight startups will be selected, with the program kicking off in February 2023.
”Given the challenging landscape for tech startups in Canada, our support can have a huge impact on a growing startup’s future, now more than ever.”
– David Marquis, vice president and Canada country manager at Intuit
Startups that intend to apply must have a solution focused on one of the following areas: rising mortgage and rent costs; savings and investments; income stability and mitigating debt; supporting small businesses and self-employed people with business management; rising costs of goods sold; and talent acquisition and retention.
Over the past two years, Intuit said it has worked with 15 startups in its Prosperity Accelerator that Intuit claims have gone on to raise over $24 million CAD. Previous participants include Stamped, Quote Machine, Beam.city DNA, Homewise, Emma, and Willful.
Reanna Ridley, head of partnerships at Intuit Canada, told BetaKit that this year’s programming will be the first to have an in-person component based out of Intuit’s new Toronto site.
Intuit and Highline Beta launched the Prosperity Accelerator in 2020 as a response to the economic hardship individuals and businesses were facing due to the shutdowns and work reductions brought by the COVID-19 pandemic.
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Businesses are facing a different problem now that COVID-19 restrictions have subsided and trends in consumer behaviour have shifted. These factors, among others like geopolitical tensions and inflation, have led to the macroeconomic downturn that saw a slowdown in venture funding for all tech sectors, including FinTechs.
The second quarter of this year saw a dip in total financing deals for FinTech startups. According to CB Insights’ State of Fintech report, funding plummeted by 75 percent quarter-over-quarter, from $1.2 billion to $300 million. Compared to the same period last year, which raised $1 billion, funding for Q2 2022 decreased by 70 percent.
With the third installment of the Prosperity Accelerator, Intuit and Highline Beta want to offer their support to Canadian companies during economic hardship.
“We want to share our resources and innovation methods with startups that are close to breakthroughs, are preparing for their next round of funding, or require technology resources to take their business to the next level,” said David Marquis, vice president and Canada country manager at Intuit.
“Given the challenging landscape for tech startups in Canada, our support can have a huge impact on a growing startup’s future, now more than ever,” Marquis concluded.
Featured image from Intuit.
