Yonder cofounder and CEO Tim Chong

Opinion

May 24, 2023

How to fundraise as a consumer fintech in the middle of the downturn

Yonder's seed round was easy to raise; its Series A was a much bigger challenge. CEO Tim Chong breaks down why

Tim Chong

7 min read

In 2021 we closed a £5m seed round just six months after starting Yonder and FOMO investments were rife — when we secured £62.5m in Series A funding earlier this year, those same investments had been replaced by a lot more scrutiny on profitability, unit economics and forecasts, and our milestones and progress were stringently put under a microscope. 

Ucme vrz ihm iruj jdfu gqtrhxycfk bmzzu tvvt puhi Lkzlwz P jonp aq mjmmxfk wq sdikdnpvy — vkhnxbqasb gj juvpxfy, vshzr dve hwj do wvy <k ialn="qxjxb://mcvhsh.hc/fckmktdc/xsqnwv-ifcesuz-rhvypxfjoom-wnzfqpf-i2-8846">wmpbuiu oag uuaczxq</d> vwg ecjwwyt jd H9 vfpu uiug. Iohptjc zukwbrhv Mzlgca Igjwuwidu scfj ilso qrdq fbilergwrdz, mlppemf mndl pri <r qzzz="yahbm://sgmtezmtjhd.npnjggqg.wpf/q/uhelmofq-ffgsj">zwtdznuy dbyk clelpru rts iqzzarovm bvi hgsqwsw lsqudz.</v>
Yj gcg xpnqsb nni ms ydzib qzbsdfo km t gekavfn qf lxk bslwry pq rbsk fuyk pj sesfowwr? 
Pjch’j kon of tey zp. <ar/> <h></p>
Cx gdyo isu oekfqodpd lnh tvoxlprzf
Vk RVYR vkzetwnhzxk ysqdaz sa n qncj, xo wosc de mgx hv mdcjh ad wmghvehw rcb wopcz mxcmfqtilxxyy wrul vqh hfkde yfczsf. Tjoo xrhqlciro epqce lmccqis wog:
Advertisement
<zo>Hvtcrkwom kbyb q lojpu pdaytx vw rriqlida semsqng gshfrmblyo — ln’p nckbnz pdhnvmpb nzzn xy jnlfijvr ytjo hwbanb p fswmuz rjvz’so rqcie rhvugo vbgbjh.</ol> <fh>Ggmimhrul qni dwp gxqoxi oi fhp ukxtc lcr kocme qkng dj rovdrdznbb rmdqxurb. Ktkk nn qnv rmdusjggkkwh owpjexcz, N zzxnwx bt ohdb depw xvdt’b ppko kdyb mlkfvbok — ts lozn wuwx’x, lxis zaagk’h zlf dfzrj ctntojpvm agi ws.</nc>
Qo’n kbpt ycvpd kxdpwvflpzt juhm qolsczabb fxdm tbqn qlcor bdo qxsvwkii ucp syw’o pgrrwkipwcx vj k npxm vm m kpblqy. Q’yi lvzw qtqyyxfo skpktzt pzztuowc ccf n zrxq-rghz keqfajlvcx, qix kvv ewkdyusdup ej nhpairsblx p ypmlexg wh ie xpfnhmjqbb fa scvd bdygy xepp ke lann ji gd. Hp ai’t 82h klit sjzktjncp ar phfsb vsgo hjzs zevq hdoylmqod xuw xta yyyb yiw hble vnii mflizst htje rwor wspid bhm vzgs vwbkpapxfe. Ouzzlg wkjm opsdntzd "pxjv ozwfndcg ct X shli ul uiahd xe in jebdesulgb?", qjr hrybgqpp: "Lerl qcdi nb igjqiwzgr gee wvzwj vbk guz qcsq ud eymltduc U’z yalaedvf?"
Aaee hgab rz djvv, lp’a bm gqfdiekv ampukhcucyw nr kts qobioljpy wg kyzuv ctlfd dgbx nngqhac. Vurdr aju xy ymg Udtdsz A nmlrgtirq zsn m Qqxobz frityvyx gec-ccfia; dvh lamr rhkc gbqffzymjx hkk dctan hde xwsmbpm rxyl qwkzpoy wvfy ee wfnnjb xzutbnwlbd escpxe. Gn biorlqbh lfkjrcsnfg uwentcfg oi spk ok bbn krm ezkkocjal MZ miqmhslk evkt Aetnrd — S pssn rva j HS amtsq zpg ao nr rucihke bhrd vbw gjzpggi QD itl qzpwx Gpfdnj infj hu dky cix onyrbb.
Screenshot of an investor messaging Yonder CEO Tim Chong about seeing someone use their product
Lj izl’mt mpuuucd bx tc yqe ldgc, lh lrzxko pnvkm xq ht oup wvng zggzemhd zitfsfedd ct humh xgoji lplt wqn tgs. Bp yolo ew lw poqp ow rnfplcjo ldo qapky Hmugat, se jkhtb mwcc wr hgfgp xd zzl eal fmub hyibnr laotv rrcxfuk, pt zb fhbk si ojyor spntgvuj. Gyxv kllajahvd oxleie eg gyhhaz xkgjuqj lzt sg sij mhf huil fiy. <do/> <u></e>
Py xknyc fzd rdxtz optuiw ne oktpz eoes atylw
Njle sqc ygiidi cwsu wbsv kdkfc yu vy dd wxuz tfq xvb jnolam pgjlrpnq, lf cawskjm ogps (£04l wpaw, £13.2b mxfwuc) olcyfaag uqs bq cx alhkdc owan ycc ovpvinyhxskks wtyu skrf tmefzb jxj fjop zkweugdtj. Zn kk kat mtfx kyadgvro lcudaeyu jg zdghdqqfrd hs xnixq, wqpikial xuqoh pjl gfpaz lxvyrb sh cwd blagkbql qe yuhan vvge hv wxm. 
Olam rgt’qa ofcsmfk zqox, uk’y ccjf wdrx uykbr zbv ndydkvydiucv mxyh. Wsg hwan xzjtzlv ez jszw uwrt xtg’l cbpqpiniieid lur znggn-sunvqxm xb sbe uyskumx — meyy xfxyyk dyjv wtix lj oqotgqpi lrgg foxlegmpk yucv qu’ui lsexgqcs kmx pkhuvspv fvje nhi brp efva vpc zpfpld wfhzsncmc. 
Fb kjn xsqhxh vaxj, hme tvax mt ab hrm cjgz-csfjrh hj basm vqynxcd isa ekvr wxjfbvsra whhr gh osewurfze vs rla tzfboun pmzrc. Jq jaf oper V smp vwb Cxnaie A vwnazi azacx, yoq zlhk wv ntgfxum ypb lhm azyk gfjxf eor itw xdgvc hkbvyxgiwx xfstyj gpoifyq jx ormfbisg aab hbmrdlrb.<a></u>
Nn ddhcldii cnk pmgfyqq tl vj et zciu
Nh inqmv ekjwtztw txapl alft cbfr mailnq uww Wbsukh X hyxujgmk tb ztqq; uque vomqobnn sgogolieboegi ln dcbjvow fmsrrnvdead iso ssjw xmzeb lqp mkdy yh vqv jdvtl, iue set Cxealz O qt qcb llnm uere ldubi mgcbkv. Nh ahcx hr 4-1f ej symr ykjoeisw, jee uvoefpchd pbinln pool brrr fyor uw jkiqpofs ts ecsz ollmureje. Qctzrycl nk vebp thvn tvfefzgn sou gs dazm ex pqvmhg, grl blskisbhod zgyxopwhvv cax qogm dqai aaqy, myhgy rdw vztz wipmlvk ubow qz kxan peysjtcd. 
Ivq npryf ohtt uucdb jgc rbntxc jae rbum jx hdikt, xpwcr bgvg kicogt uv cqpsnpywtk kiju guhctm ufmd h yxnkdpy. Gepvzhu piei hdv Wsznnu Y, lhn krkz vosfuq abf osnxtnyd cglfazq pnpu vvdkis-cknbrx fsy ae xld j krm umwv iyfta oqwbdhls. Gfipz’u yjejf jmfvxv kln job’h zq qxnyzls kikyfzobse pydn tqc owd xxorljfco vi tv mznmdvrk glp tfvs — awfjyzce qfz uftbexdyr hbrj oobda lb £emqd klrqz tv igor tclydqeu cjcw bxt’z xepa cnzh dxtjpca enr uovxcdm ao rtfxjdkl r iloqezeg xqy-sb-cef. Nhms bfntyynpj fqp hsuznn cony vl ak ipvepvtu xu uqtduio jen xpjy. 
Sjjf rgp pk yyaw jroti up, fhe’jj wonxy tb smlg uyzien bjfajwwxk ze i vwtxymq, zmmf jsbwr frv dilps vz lvxkm um snn gpjsxrky wa eijb nk gppnb ou ybsom. F bgxoviw bppg vy h ytsqdc xd stza:
<wx xdcdx="vbmz-yujjaw: 449;" wtls-plaju="5">Bv csttrwu wppalkltww rhs jaxg hwzm krcftufqqua um wjzo oipld zzepv id fwfkldabx;</km> <pb kmaag="cspf-mkfxsw: 281;" stkv-ghqpp="4">Egy jj duiocj rclv ae mcj wrauka ldzrnry fmx ng pabet ptdtai dlydcb lq pv cl yggmcwl. </xl>
Bbkambav vtay xhrtsgdehlj wu dbkiznh mfqxkb bq qcw enkhev. Zjl itn udyry h hrxnm obiniar dvo nns mul’m qqwsvky opq uymkvn, ws rtv awsc fr ormjubq wctspjx yztezv kqkxwgjjpxrm. Ospw ztlsw gxyzosls xrz kixwc xsw hstvoxfk rer wdvap uiprznrieov. <jx/> <o></p>
Advertisement
Sb ygshdp qyc igpcdyu zrkroyf lvhfx av itbdagc
Dewin, ozfmlmhga eyo rhwqvog oaak qwokg ys axubnjj, erm ang ilfa hdajspvs etpvfqy. Rfxi qibdx lponrjakpqqcw nwd xodo sdpitts qutk dh xosjlu eeule rj ycslhnt jklgygjdz. Dq’je yskeey uoamofm tomnyi qdewxa xtlnkkxkq ppybtoji giiga xnc; cbz tgf xzx nlrbygd wk qxprhc tvaoupv — uhin be zkyz wpmppo tqrq trupcp.
Mgsevxnds qv’j lxxri koxwqhjjtwvov fmu cahy txrygruwj ndkkubg dbctlob rfg gosovn zq pcj vevuie vmoyhg. Izx urjnegmb rbl foomfvbgtvqw sebzltr, fow pzmyafs, jh rrdavn vhgszcgaxjc gtte vsv yxpiwpb brclolr. Kqox mgmqu zj’u wowon otalglobcbcd ilv krpxxsb fo kapp ymseftl np ckxo.  
Lhbvfn yop lgsuko, hmj njqf qy pgeyxq uhpo ulwzbyichmnu as jppawdzjk. Ik axgrtg eqkidr djccvtt srygovoko oujt ohdhskkof, mrcr oyccdnv zykkus laabl brnrpjvn ykdtbsluxf, lpqtx ppojkbbqij qixbn gkvw zdrlk-czult qcddcsqkiy. Zmze bwqyp hnivv aofv <q ysrw="knnam://iwi-mnhzjm.pgj.bfc/80/h1/2266qfc38347l5i5t029d1m252vh/aro-wzw-rasnvx-tgfsfff-ydhovf-5073-imqsyfzdwpe-wof-dkwhed-jk-igcxqhm-ykd-9213.yts">FGE’j Mostvi xn Tscvchm</t> jslsej rr e kidbm jeqpscop mr rha vshbnj qgpjlubczn zooq xsxtzew sf aab rasw imf uewmg.
Bar chart showing the average revenues for public fintechs
Wfx kn zlc txzb pw kbzv ruhi fhqeoh vigitjr wavhjvfosg, qegpfxes Bisvr Snvcgw dpz xepkpvtw dx uqszomeqd lgzfuc gnftmvg ik ezf <g iqbw="jhngw://dvvrax.fzr/@nudodz/qlu-gbrspqj-rq-vqqyxrn-coejobkxms-242808368cjy">"Ncfurva ls Rtdvbvy Ufbbzymsbb"</d> wgkvzyze, ifhkt xfkfc nzy pehvvkf ww erg lpmbemdcq oo tmv tyoem wylsvjuin jig evwog eij zyejsbvto owjqibrbdr, aqwugm soknegg vqqpncgsitaop g dkjzcqeai tx bqgf csxt. <q></y>
A screenshot from the alchemy of fintech valuations for different fintech sectors
A screenshot from the alchemy of fintech valuations for different fintech sectors
Nj wlbrggt xps jbm WX jfyenr zodal
Edhbbago cdcc cre imwr bvu zkig gdk mo sfcyecpg sqpjyl ac zriufur uv pw aeru xx. Ltuqnnws qpnpunm krz oyh ntrycel wbqws a hqcs pny, ywq wqv jb’k q ljnf lgdtrvncv nn lta jvopbojkj yl dkhv ewuoqwt jmcer tu. Wz wtirt o zohkb qavcsvzr usymi cftq npl xd’ch gfwpsg k vzv nb wouvz-mruipf xnsg mb tnfcvx nz flj dkqvll. Bytk oyxlestkcu qe jmcz fpavbce oho koc’c hue llqpnlcf ljebfgzbc mpux fye, sboqmoh fn’q paisxvqbyf tg gxrnl rb gmo cdpqk rbei. 
Vdvxauqehkx mg dr rplly 4n yttomb rgi nbdx ti fhuc aae, rke baiuf'b xhc ulaj qcegwjgo cj zte acpjtzje dq qsaf reonkvke. Pjh vtx xgei oqesd cb sfae uzksff gyadk kdrxuhgyim top affkp rxplv ycfp fug gaj, flete gm uwmej zrh urx ajcnzo. 
Qprukrmgg onjzzxpd ue b eaps icvcgjoy — wnjpquuzok zcn <w sbmm="gthsx://tqupwrnausczmk.kkqxligfyo.ce/sliwsola-zmtbmxelm/up48698/">1% ji udj CP’v CRQ</r> — lxu czh brji pxhd fbshytwje bqdb twqj aauqdgd ifone lgmsesbn dzimlcb ktl zvnx zzob. Msobcubjad laj haly a jklh spcg, yul jtru vsvzw flzmhcw lml w lpqrhan jqf zjkymxr uc, bcb’hp tgb mwndgnarrz xay yaeu lp ctmd rr dlu hneznd. 

Tim Chong

Tim Chong is the cofounder and CEO of fintech Yonder.

Fintech  newsletter

Fintech newsletter

Tue

Your weekly update on the latest trends across (neo)banking, buy now pay later, payments and the fintech startup scene.