--- url: 'https://qubit.capital/blog/fintech-fundraising-readiness-due-diligence' title: 'Fintech Fundraising: Get Licenses and Regulator Approvals Ready First' author: name: Kshitiz Agrawal url: 'https://qubit.capital/blog/author/kshitiz' date: '2026-01-02T12:25:00+05:30' modified: '2026-10-01T17:14:38+05:30' type: post categories: - Industry-Specific Insights image: 'https://qubit.capital/wp-content/uploads/2026/10/fintech-fundraising-readiness-due-diligence-banner.webp' published: true --- # Fintech Fundraising: Get Licenses and Regulator Approvals Ready First Table of Contents - [Key Takeaways](#key-takeaways) - [Why Licenses Decide Fintech Fundraising](#why-licenses-decide-fintech-fundraising) - [Gate 1: Your License, or Your Partner Bank's](#gate-1-your-license-or-your-partner-bank-s) - [Gate 2: Regulator Approval for New Investors](#gate-2-regulator-approval-for-new-investors) - [Where Fintech Due Diligence Picks Up](#where-fintech-due-diligence-picks-up) - [Before You Open the Round](#before-you-open-the-round) ## Key Takeaways - In fintech fundraising, investors ask what lets you operate before they ask how fast you grow. - You either hold the license or launch on a partner bank that does, and the bank reviews you first. - A new investor’s stake can need regulator approval, and in the UK the FCA has up to 60 working days to decide. - The rest of fintech due diligence builds on these two gates. Fintech fundraising starts with two gates other startups skip: a license to operate, and regulator approval of your new owners. Investors check both early. A round can have a willing lead and still stall on either one. The financial model, pitch deck and data room all sit on top of these gates. This page covers what each gate is, how long it takes, and what to have in writing. ## Why Licenses Decide Fintech Fundraising A software startup can raise on Monday and ship on Tuesday. A fintech that moves money, lends or holds deposits usually needs a regulator’s yes first. That yes comes directly, or through a bank that answers to a regulator. This changes what an investor is buying. Revenue in your forecast only counts once you are allowed to earn it. The same question runs through [how fintechs fund each stage](https://qubit.capital/blog/fintech-funding-trends-strategies-opportunities), from angel rounds to debt. ## Gate 1: Your License, or Your Partner Bank’s There are two routes: hold the license yourself, or launch on a partner bank’s charter under a contract. In the US, money transmission is licensed state by state. The bank route usually launches sooner but brings its own review. US bank regulators list [six common areas](https://www.occ.gov/news-issuances/bulletins/2021/bulletin-2021-40.html) of due diligence a bank covers before it signs a fintech. They add: “The lack of certain information may not necessarily lead to disqualifying a fintech company as a prospective third party.” Gaps still slow that review, and a slow review moves the launch date in the plan investors are reading. Show investors the document that proves your stage. That means a license filed, a bank agreement signed, or a program already live. ## Gate 2: Regulator Approval for New Investors Once you are licensed, the regulator cares who owns you. A new investor crossing a set stake may need approval before any shares change hands. In the UK, anyone buying control of a regulated firm must notify the FCA and get approval first. Skipping that step is a [criminal offence](https://www.fca.org.uk/firms/change-control), and the FCA has up to 60 working days to assess a complete notice. For many firm types the bands start at [10% or more](https://www.fca.org.uk/firms/change-control/control-thresholds-bands), while other firms have one band at 20%. By our reading, a lead taking 15% of a firm in the 10% group would need approval before closing. Put the filing into the round’s timeline from the term sheet on. A new round can also change the [capital a regulated fintech must hold](https://qubit.capital/blog/how-to-manage-fintech-capital-requirements). ## Where Fintech Due Diligence Picks Up With both gates clear, investors run the usual review of financials, cap table, security and controls. Those documents belong in a [fintech due diligence checklist](https://qubit.capital/blog/fintech-due-diligence-checklist) you keep current, not one you build after the term sheet. Bank and investor reviews feed each other. [Mitchell Lee](https://synctera.com/post/fintech-due-diligence-guide-for-community-banks), head of risk at Synctera, previously led the San Francisco Fed’s fintech program. For an early fintech, he writes, the lead investor “may be a helpful signaling mechanism as VCs perform their own intensive diligence.” Synctera runs a platform for bank and fintech partnerships, so it sees both sides. For founders, a strong lead helps the bank say yes, and a signed bank helps the next investor say yes. Build one document set that serves both reviews. ## Before You Open the Round Have three things in writing before the first investor call. The license or bank agreement you operate under, and the status of any pending application. A note on which investor stakes would need regulator approval, and how long each filing takes. With those ready, fintech fundraising runs like any other raise, with a longer checklist. Qubit Capital’s [Fundraising Assistance](https://qubit.capital/startup-services/fundraising-assistance) gets fintech founders investor-ready. Keep your license work moving while our team runs your raise.