Plaid launches diversity-focused fintech incubator

This week, data aggregator Plaid launched FinRise, an incubator aimed at early-stage fintech founders from underrepresented (BIPOC) backgrounds.

Why should we care?
FinRise is a nine-month program for three to five post-seed and pre-Series B tech startups that have a product in the beta stage. Selected companies must have a part of their business focused on consumer business financial data. The program, which includes a bootcamp component, strives to give underrepresented founders a fair shake in a startup ecosystem that lacks diversity. This isn’t Plaid’s first incubator program: The company, since 2017, has offered a “request for startups” program that develops founder expertise on specific areas of financial innovation (last year’s areas of focus included solutions for students, lending, and last-mile remittance). It’s unclear if FinRise will replace this program or whether the two will co-exist, but Plaid said it hopes to mentor FinRise founders and make introductions to venture capital firms, but it won’t be taking equity in any of the FinRise startups.